Legal Question in Criminal Law in India

Legally Enforceable Debt or other Libility

Under Section 138 of The Negotiable Instruments Act,1881,

''debt or other liability'' means a legally enforceable debt or other libility.

If a debt or other liability that exists but is stayed by a competent court/authority (BIFR), will this debt be leagally enforceable during the period of stay granted??


Asked on 7/31/03, 11:18 pm

1 Answer from Attorneys
Jayesh Kanani Jayesh Kanani And Company.

Re: Legally Enforceable Debt or other Libility

DURING THE PERIOD OF REFERENCE UNDER SEC. 16 OG SICA,1985, ONLY THE ENFORCEMENT OF RECOVERY PROCEEDINGS ARE STAYED, BUT NOT THE LEGALITY OR VALIDITY OF THE ORTGINAL CLAIM. PENDENCY OF SUCH REFERENCE HAS NO EFFECT ON PROSECUTION UNDER SEC. 138 OF N. I. ACT.

THE TRIAL CAN GO ON AND THE ACCUSED CAN BE CONVICTED,IF THERE IS NO PROHIBITORY ORDER UNDER SEC. 22-A OF SICA,1985, AT THE TIME OF SERVICE OF DEMAND NOTICE UNDER SEC. 138(b) OF N. I. ACT.

JAYESH KANANI. 09820707525

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Answered on 8/01/03, 8:31 am


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