Legal Question in Banking Law in India

we rare running mlm company . last year we have given post dated cheques(as a securety cheques) to our custmers on the behalf of future business growth , by bed luck our bisness plan is failed , though we got forms fullfilled by them that all busness is depended on growth but securety cheques not mention in that from. now they are threatning us for court, and we r not able to pay money back reason being most of money has been disturbuted among company's leaders, so light me the path, plz


Asked on 8/26/10, 1:03 am

2 Answers from Attorneys

Well, Its a situation which is quite difficult for your company.

See at the most the persons those who are having the cheques can present the same in the bank and get it dishounered. Thereafter they may issue notice and file a case against your company under Section 138 NI Act.

To file such case the complainant has to prove that there was a legal debt due from the person issuing such cheque.

In your case the understanding and the paper work signed between you and your customers would be relevant factor in deciding whether there was any legal debt due from your side or not.

What was the bases behind such security cheques, any other written understanding apart from FORMS, communications etc.

For further details and clarifications you may contact us at 9811617186

log on to www.mavenlegal.net

Regards

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Answered on 8/26/10, 1:51 am
Vishwa Arya Arya & Co.

there cannot be a better opinion that what you have above

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Answered on 8/26/10, 8:29 am


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