Legal Question in Criminal Law in India

Chq given as security got bounced

I had given a chq to one company as security, for processing my work permit. They cud use that if I denies to fly latter on. Now suddenly they asked for money before giving work permit paper. When I questioned them, they says they want money first and they deposited chq. During this time my A/c was closed due to some error on my side and chq got bounced. I have re-activated the A/c immediatley but it got late by 2 days and chq got bounced. Now they are serving me notice and threatning to file case. Question is If I have NOT said NO on processing work permit then how could they demand money as liquidated damage !! Chq was given as security and to be encash only if I break agreements ? But I have not done any of this. Work permit got approved in Oct/Nov 06. And then I waited for 2/3 month since my wife's passport needed some correction. On passport work completion I approached them and they started asking money !! What the law says ? Can they encash even though it was given as security, as per legal agreement ? I have email from them where they states that let cheque gets clear and then they will give documents to you. Please help me on this !!! Does they have strong base for case ? Thanks in advance for your valuable advice.


Asked on 3/08/07, 9:37 am

5 Answers from Attorneys

D. M. Bhalla D.M LAW CHAMBER

Re: Chq given as security got bounced

You got a very good case and need not bother for the proceedings initiated by your employers, but provided you proceed at the earliest against them. The advice is very sensitive and cannot be conveyed to you through this mode. If you seek the remedy, you may contact me, but that is with a price tag.

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Answered on 3/11/07, 1:24 pm
G. M. Gupta gmguptaandassociates

Re: Chq given as security got bounced

the amount shall be payable for filing complaint under the act.

in your case seems that the company or whatever, is cheating upon you and the amount is not due to them at present.

in this situation if you want to pay the amount you can pay even in the notice period and u need not to worry about the case

otherwise you can file complaint against the company for misuse of the cheque.

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Answered on 3/09/07, 8:52 am

Re: Chq given as security got bounced

Time limit is one month.so they lost limitation, as 2/3 month passed.checque given as security not as discharging liability,can be a basis for proceedin u/s138 n.i.act.

however the same is aquestion of evidence.

now you can claim the document as per agreement in legal proceeding.

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Answered on 3/08/07, 10:35 am

Re: Chq given as security got bounced

Handing over of cheque ammount to completion of Negotiation of instrumen and sice cheque is with them they could redeposit the cheque in bank they could send notice to you then send the reply stating all facts.In the mean time you may ask back your cheque.I advise you to preserve the e-mail sent by the company.In your case if any agreement is reduced in writing then the same is required to give proper advise and to asses the gravity of their stand/case.

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Answered on 3/08/07, 10:52 am
JUZER UDAIPURI M/S. UDAIPURI & COMPANY

Re: Chq given as security got bounced

Dear friend,

Firstly, you nned to answer categorically is whether the security cheque was given on a written agreement. If the written agreement says that it is a security cheque, you need not worry at all.

However, if the agreement does not clearly spell it out then have you got any emails stating so from the company.

Thirdly, your personal impressions are of no use in court unless you can substantiate the understanding on paper.

Currently, what is the scenario ? Have they deposited the cheque once again, have you utilized their services, are you or your wife going to fly ?

Please be specific in your query with nearly approximate dates, so that your query can be answered precisely.

Kindly contact me if any other details are required.

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Answered on 3/11/07, 3:06 am


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