• Cheque from a NPA account

1. Cheque dishonoured with the memo from the bank stating that the account is NPA and cheque cannot be presented and is being returned 
A)Does this cheque has the same status under us 138 of negotiable and a case can be filed ? 
B) how does a person even know if a cheque is given from a valid account .. taking cheque’s has become so risky
Asked 4 years ago in Criminal Law
Religion: Hindu

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10 Answers

For filing a case under sec 138 there must be a legally recoverable debt and the cheque must be dishonored as funds in sufficient. If the account is non performing asset it means that the person is chronic defaulter and the account is seized. You need to recover money either by filing civil suit for recovery of money or if you have pro note executed by the person you can file for recovery. Always its advisable to take cheque along with pro note

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

You can filecomplaint under section 138 NI if cheque’s is returned on grounds account is NPA

2) issue accused notice to make payment within period of 15 days

3) if he fails to pay then file complaint. Under section 138 NI

4) also file summary suit to recover your money with interest

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

1. Yes tou give them notice to lag your debts in time.frsme if they fail 138 NI complaint can be filed also a case.of cheating breach of trust.NEPC Micon Ltd. Vs Megma Leasing Ltd.' 1999(VI) AD Supreme Court 453 that offence under Section 138 of the Act is also attracted when account is closed

2. Yes it has become.a.risk now.days from.ongoing frauds as there is no centralised system.other person can know the status of bank account. So it is always better thar first cheque is cleared then only any service goods are supplied or work is done. Further the central govt. And SC are trying to make law on Negotiable instrument strict to save it's value.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. IRRESPECTIVE of NPA a/c, a complaint can still be filed u/s 138 for cheque bouncing.

2. FURTHER, a criminal case for Cheating & Fraud can also be filed separately in the local magistrates court, BUT ONLY AFTER filing a Police FIR in the matter.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

1. Yes, you can file a case under 138.

2. Do not worry and file a case under 138. If the cheque is not honored then the case can be filed under 138 irrespective of the fact that what is the reason of the dishonor.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Dear Cleint,

Case of cheque bounce made out. No such way to figure out in advance that cheque issued from existing account except bank statement or verify from bank.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

If cheque issued through invalid account you should file Complaint u/s 420 468 of ipc.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

issue accused notice to make payment within period of 15 days

if he fails to pay then file case u/s 138 NI on the grounds of NPA account

also file summary suit to recover your money with interest

It very risky to take cheques and then recover such amount in case of cheque bounce due to some reason it may be insufficient funds,NPA accounts,person wants to cheat,fraud etc.

There is no centralized system by which we know the status of account by whom we accepting cheques

So it is always better that first cheque is cleared then only any service goods are supplied or work is done.

Dimple Jain
Advocate, Jodhpur
222 Answers

Not rated

Dear client,

As per section 138 of Indian Negotiable Instrument Act, says that

INGREDIENTS OF OFFENCE UNDER SECTION 138:

The cheque should have been issued for the discharge , in whole or part, of any debt or other liability

The cheque should have been presented within a period of six months or within its validity period whichever is earlier.

The payee or holder in due course should have issued a notice in writing to the drawer within 30 days of the receipt of information by him from the Bank regarding the return of the cheque as unpaid. After receipt of the said notice from the holder in due course, the drawer should have failed to pay the cheque within 15 days of receipt of the said notice.

You can go through this decision:

CHAIRMAN, JAWAHAR COOPERATIVE URBAN BANK LTD. AND OTHERS VS. RAMANJANEYA ENTERPRISES, HYD. AND ANOTHER.

Negotiable Instrument (Amendment) Act, 2018.

The new Section 143 A empowers the Court trying an offence under Section 138 of the NI Act (cheque dishonor cases) order the drawer of the cheque to pay interim compensation to the complainant. The interim compensation so payable shall be twenty percent of the amount of the impugned cheque. Earlier, there was no such relief available to the complainant under the Act.

I can assure you that you got case as per the recent amendments.

Koushalya Pattan
Advocate, Bangalore
174 Answers

Not rated

1. Once the cheque has been returned by bank for some valid reason then the drawer of the cheque has to compensate the same by alternative sources, or else it may attract the provisions of section 138 of NI act.

2. You will come to know about it only when it is bounced, otherwise you should your prudence before accepting the cheque

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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