Legal Question in Banking Law in India

Cheque Bounce

This is with regard to a cheque bounce case filed a year back. The directors' lawyer orally told the court of a compromise they were contemplating. But when asked to pay Rs.10000 (against 3,00,000 cheque amount) by the magistrate as proof of their sincerity, so far they have not paid a penny pleading not enough money.

a) What should we do under the circumstances? Can we request for issue of a non-bailable warrant and see if they pay? How many hearings should be over before we can pray for issuance of non-bailable warrant by the magistrate? Do the magistrates normally issue NB warrants in such cases?

a) The Directors' lawyer orally told the court about a compromise. This, we hope has been recorded by the Magistrate. Does this mean that the case cannot be reopened later in this or higher courts?

b) What is it that they are planning now? Because the current magistrate, who heard the case, will be replaced by another one coming in on transfer shortly. Can the directos now plead that the previous magistrate did not conduct the case properly and request for re-hearing etc.?


Asked on 4/29/07, 9:47 am

3 Answers from Attorneys
G. M. Gupta gmguptaandassociates

Re: Cheque Bounce

the compromise will take effect only when you will be ready for that.

if you dont want compromise then either file an application in this regard or on the date of hearing submit your intentions and ask to court to proceed with the matter.

the compromise can take effect even at later stage and i would suggest to continue with the case and let them come up with good offers.

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Answered on 5/01/07, 1:08 pm
J. Radhakrishnan independent Practice

Re: Cheque Bounce

We presume that the querist prosecutes the drawer company and its directors, through his lawyer. It is advisable and in accordance with legal propriety that he seeks the guidance of his lawyer in the matter instead of throwing the questions in the public domain. The case requires study of specific fact situation and advice relevant to the same. It appears that the accused are already represented by a lawyer. His oral offer of compromise even if recorded would not be of any value. Under the present procedure, evidence of prosecution can be let in by affidavit. If that is done, then the accused will have enter their defence. As long as the accused appear through lawyer, non bailable warrant is not possible, unless the accused do not appear and their lawyer also does not pray for dispensing with their appearance. Even if the present Magistrate is transferred, the succeeding Magistrate will continue the case in accordance with legal procedure. It is better that the querist seek appropriate guidance in the matter from his lawyer who represents him/her in the case and not to submit hypothetical and inconclusive queries in this forum.

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Answered on 4/29/07, 10:24 am

Re: Cheque Bounce

you move an application pointing out the statement given by the opposite advocate and also state that no alleged compromise had taken place and make prayer to proceed with the matter on merit.

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Answered on 4/29/07, 11:38 am


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