• Is NI Act 138 case transferable

1. A Company has filed 138 cases under NI Act against other corporate debtors. Case is still being heard at evidence stage. If Company wants to transfer / assign the bad debts, can the cheque bounce cases be continued by the assignee ? 

2. The 138 cases are pending since last 5 years due to frequest adjournments taken by opposite party / judge not sitting. Anyway to expedite?

3. Can 420 cases be filed in addition to 138 cases if there is evidence of some fraud?
Asked 2 months ago in Criminal Law from Kolkata, West Bengal
Religion: Other

Dear Client,

Criminal complain u/s 420 can be proceeded simultaneously with sec 138 case. Declaring bed debt has no impact on case, legally enforceable debt still due.

Change lawyer to expedite case.

Yogendra Singh Rajawat
Advocate, Jaipur
8236 Answers
7 Consultations

4.7 on 5.0

1. The cheque bounce case being quasi civil in nature cannot be assigned.

2. File a petition in high.court for direction to expedite the case.

3. Yes 420 along 406 ipc can be filed for cheating for same FIR can he filed.

Shubham Jhajharia
Advocate, Ahmedabad
13121 Answers
50 Consultations

5.0 on 5.0

1. assignee can continue the case. a substitution application will have to be made

2. file a writ petition in High Court seeking necessary directions to Magistrate to expedite

3. yes. You can also file a summary suit in civil court

Yusuf Rampurawala
Advocate, Mumbai
3469 Answers
14 Consultations

5.0 on 5.0

you can file case of cheating in addition to cheque bouncing case 

 

2) most cheque bouncing cases take 6 years to be disposed of due to heavy backlog of cases in trail court . 

 

3)  you can approach HC for expediting the cheque bouncing case 

Ajay Sethi
Advocate, Mumbai
58467 Answers
3534 Consultations

5.0 on 5.0

Dear Sir,
My answers are as follows:

1. A Company has filed 138 cases under NI Act against other corporate debtors. Case is still being heard at evidence stage. If Company wants to transfer / assign the bad debts, can the cheque bounce cases be continued by the assignee ?

Ans: Yes, but it must be permitted by the court and material to be produced to satisfy the court.

2. The 138 cases are pending since last 5 years due to frequent adjournments taken by opposite party / judge not sitting. Anyway to expedite?

Ans: The recent Supreme Court judgment says it must be disposed off within 6 months. You may also approach High Court to get a direction to dispose case with in certain time limit.

3. Can 420 cases be filed in addition to 138 cases if there is evidence of some fraud?
Ans: No, however if there is a finding by the cheque bounce case then such a charge may be added to the existing case or submit case may be registered.

Netravathi Kalaskar
Advocate, Bangalore
1730 Answers
5 Consultations

5.0 on 5.0

my answer is based on logic

suppose if the complainant company goes insolvent and all its assets are taken over by a liquidator who is the official assignee of the company

the liquidator can then pursue all claims of the company pending in any court of law

likewise a company may decide to transfer its assets (which includes actionable claims and debts) to another company. Then can the law leave the transferee company remediless?

i will have to look for some judgment on this aspect

 

Yusuf Rampurawala
Advocate, Mumbai
3469 Answers
14 Consultations

5.0 on 5.0

Delhi high court has held 

 

18. The proceedings for dishonour of cheques under NI Act are quasi criminal in nature giving option to the complainant to compound the offence subject to the payment of the said amount. When the complete loan account of borrower is taken over by the securitization/reconstruction company, there can be no reason why the liabilities arising out of such a loan amount and so also the proceedings arising therefrom, cannot be transferred and why respondent No.1 cannot be substituted as a complainant in place of the bank, whose financial interests it has acquired, even in complaint under section 138 of the NI Act, filed before agreement of assignment is entered. Once the interest in itself stands transferred, the bank would have no interest in prosecuting the complaint any further and if, respondent No.1 is not allowed to be substituted in place of respondent No.2, it would have an effect of giving an undue advantage to the scrupulous borrower

 

2) cheque bouncing case can be continued by assignee 

Ajay Sethi
Advocate, Mumbai
58467 Answers
3534 Consultations

5.0 on 5.0

Sir it cannot be assigned the nature of offence is criminal not just recovery of debt in civil matter so it cannot be done.

Shubham Jhajharia
Advocate, Ahmedabad
13121 Answers
50 Consultations

5.0 on 5.0

1. If the said assignment covers all debts including debts for which legal actions are pending, then the Assignee can step in to the shoes of the Assignor and pursue the said case filed by the Assignor taking it to its logical end.

 

2. Any case in addition to the existing case on the same issue can be added/filed by the Assignor.

Krishna Kishore Ganguly
Advocate, Kolkata
21342 Answers
545 Consultations

5.0 on 5.0

1. yes

2. you can move to  sessions or High court for expediting the same

3. yes

Prashant Nayak
Advocate, Mumbai
6120 Answers
5 Consultations

4.8 on 5.0

1.  The continuance of the cheque bounce case is the decision to be taken based on the prevailing situation.

 

2. You can file a petition befoe high court seeking expeditous disposal, but even that are being resisted by crafty advocates.

 

3. Yes, it can be simultaneously filed 

T Kalaiselvan
Advocate, Vellore
48555 Answers
576 Consultations

5.0 on 5.0

Yes it can be continued based on the decison taken by the assignee.

 

T Kalaiselvan
Advocate, Vellore
48555 Answers
576 Consultations

5.0 on 5.0

  1. No in the instant situation it cannot be continued.
  2. Your advocate should put up the matter and ask the court for speedy trial of the same.
  3. No you cannot sue a person on the same ground , however you have to show the cause of action to be taken place recently.

Hope this helps.

Regards.

Swarupananda Neogi
Advocate, Kolkata
917 Answers
2 Consultations

4.8 on 5.0

1. The company is free to assign and transfer the bad debts, but it does not transfer the cause of action of the 138 NI Act case already filed by the company. Cause of action in a criminal case is not transferable.

2. The assignee shall have no cause of action to step into the shoes of the assignor in 138 NI Act case. 

Ashish Davessar
Advocate, Jaipur
25432 Answers
723 Consultations

5.0 on 5.0

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