Question regarding Section 138 of the Negotiable Instruments Act
Due to COVID-19 earnings of most of the business are affected because most of the businesses were forced to close due to lock down (force majeure). When the business takes the loan from the bank then they take post dated cheques. Now even when the EMI is 10 days late they are threatening to file cheque bounce case under Section 138 of the Negotiable Instruments Act. I have the following questions. Firstly, can a bank or NBFC file cheque bounce case 1000 km away from some remote place even if bank has 50 branches in city of borrower and loan was originated in the city of borrower. Moreover, can bank take post dated cheques since now Positive Pay system is in force.
Asked 1 year ago in Criminal Law