• Section 138

I was dealing with a party for last four years, and money transaction was very well going on, at the end he issued me a cheq. which is bounced by the bank. I approached him several time for payment, he declined. I filed a case under sec.138 and in that he is saying that i have lost in business i was doing with me thats why ii can not pay. Is it right? can he escape saying so?
Asked 6 years ago in Criminal Law
Religion: Muslim

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17 Answers

if he refuses to pay he would be convicted of offence under section 138 Ni and would be sentenced to imprisonment 

Ajay Sethi
Advocate, Mumbai
100004 Answers
8163 Consultations

if you have to pay him for earlier work he can claim payment form you 

 

2) file suit to recover money due and payable by you 

Ajay Sethi
Advocate, Mumbai
100004 Answers
8163 Consultations

Hi,

This is not a valid defense. He should have informed you regarding this. However, on the basis of your past relationship, you may grant him time by undertaking on his part to make payments.

Ganesh Singh
Advocate, New Delhi
7172 Answers
16 Consultations

NO escape, he literally admitted the payment due. Good for your case.

NO.

You almost win the case.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

No that is not right defence , he owe you legal debt for same he has issued the cheque he cannot take such defence before the court.

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

See primarily it was upon you to establish you case now you have done that by mere saying he cannot take defence he need proof of same.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

No this is not right as he has issued the check it is his responsibility to pay the amount as per the cheque.

you have to prove in the code that he has the outstanding and was liable to pay the amount

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

No, he can not escape by saying so 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

No. 

You will have to show that the payment was for some legally enforceable debt and that the same has not been done in the present case. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1. loss of business is no answer to disclaim a liability under the cheque for which it was issued in first place

2. the defendant's burden does not get discharged by asserting as above

3. the defendant also cannot seek any set off against the cheque amount by claiming payments for previous work

4. the cheque transaction is distinct and independent and cannot be mixed with past transactions

Yusuf Rampurawala
Advocate, Mumbai
7929 Answers
79 Consultations

On the dishonour of a cheque, one can file a suit for recovery of the cheque amount along with the cost and interest under order XXXVII of Code of Civil Procedure 1908 ( which is a summary procedure and) can also file a Criminal Complaint us 138 of Negotiable Instrument Act for punishment to the signatory of the cheque for haring committed an offence

Mohammed Mujeeb
Advocate, Hyderabad
19382 Answers
32 Consultations

drawer cannot escape from his responsibility. 

Mohammed Mujeeb
Advocate, Hyderabad
19382 Answers
32 Consultations

No he can't escape by saying that. You can seek attachment of the property to seek the previous condition

Prashant Nayak
Advocate, Mumbai
34680 Answers
249 Consultations

If you prove that the cheque issued against the money (debt) payable to you, you will succeed.

He cannot claim set off with other work.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

He cannot escape the liability on this ground.

Since he has issued cheque then it becomes his responsibility to settle the amount or face the charges leveled against him in the court of law.

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

Let him claim anything in any manner, you can concentrate on your case by producing yor side evidence with the support of documentary evidences and merits in your side to properly prosecute the case against him.

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

No he cannot escape the liability on ground of losses in business. 

He have to pay the dues for which he have issued the cheque.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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