I issued 3 cheques (in name of a miller) & gave it to my broker from whom i bought goods of miller. Due some reason he insisted paying in cash(i didn't took any receipts) & i paid. I failed to collect my 3 cheques but made them stop. My broker didn't paid miller the cash but after cheque validity expired, these cheques were given to miller for collection & miller obviously failed to encash them. Now miller have served me a notice. What are my options & how to proceed
You would have to duly reply to the legal notice received by you from Miller and try to settle the matter. If you do not pay them, a suit for recovery would he filed by them against you.
As you have already paid your broker, who in turn hasn't paid the money to Miller, you should file a complaint against the broker under section 406 and 420 of the Indian penal code for the offence of criminal breach of trust and cheating.
The validity of the cheque has expired. Therefore a case under the negotiable instrument act cannot be filed by him. You should file a summary suit case for recovery of the amount from the broker. Also a case of fraud and criminal breach of trust should also be filed.the reply to the notice must be given citing details of the whole transaction.
Regards
Hello
immediateLy tender a reply to the said Legal Notice.
regards
You have to issue reply notice denying all the allegations.
You may even attach copies of evidence to prove that you are not liable to pay anything.
Despite this if he proceeds with the cheque bounce case you can properly challenge the same in the trial proceedings.
if validity of cheque has expired then it cannot be presented for payment
2) it is necessary to peruse contents of notice issued to you
3) you are liable to pay miller for goods sold and delivered to you
If you have been duped by broker you have to file case against broker and seek to recover money misappropriated by the broker .
Fil case of cheating , criminal breach of trust against broker under section 406 , 420 of IPC
Now you need to reply to the notice. You can file a cheating case against broker also. If the miller continues in court you need to contest the case
See you can reply to the notice stating that payment is already made to broker as agreed. See as cheque expired there cannot be 138 NI complaint against you. The Miller has to file summary suit to recover the amount which can contested.
1) Once the valid of cheques are over the Miller should return cheques to you for reissue of new cheques. Instead of sending notice to you he could have return cheques to you. So you can reply to his notice for not return cheques before validity expired.
you are still liable to pay the Miller
ideally you should have given a crossed A/C payee cheque in name of Miller
as you paid the broker and that too in cash, the Miller's dues would still remain outstanding
you will have to file a suit against the broker for recovery of your money
you can also file a criminal complaint against the broker
You need to respond to this notice, rejecting the claim of the miller. You need to say in this notice that you have already paid the dues and as such, there's no existing admitted liability and hence no case of cheque bouncing is made against you.
It is advisable that you reply to the notice of the Miller through an Advocate/
The validity periods of cheques is 3 months from the date of issue of the instrument..
If the validity is expired he can not file case under 138NI Act.
Please contact with legal notice and details of cheque so as to ascertain if cheque dishonour can be demanded in which provisions either 148 ni or recovery.
