Legal Question in Criminal Law in India

ECS vs. section 138

While its answered long back, I desire an update under law today. ''Upon failure of ECS--i.e. ECS fails for insufficient funds, can the customer be sued under section 138 of NI act?? Is ECS synonymous to truncated cheque or electronic cheque as defined under the ammended sec. 138 in 2002 ??

Asked on 2/13/09, 5:01 am

2 Answers from Attorneys

Shrichand Nahar S.V.Nahar, Advocate
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Re: ECS vs. section 138

As defined in S.2(6) of the NI Act, electronic cheque means mirror image of a paper cheque.

If ECS means mirrow image of a paper cheque, then 138 NI may be attracted.

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Answered on 2/13/09, 5:33 am
Sudershan Goel Sudershan Goel - Advocate, International Visiting Scholar, USA [2008-10]
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Re: ECS vs. section 138

The payee is entitled to prosecute the drawer for bouncing of cheque in every situation except where the drawer did not have any liability to make the payment.

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Answered on 2/13/09, 7:08 am

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