Legal Question in Banking Law in India

cheque bounce

my brother who had signed blank cheques of my account has misused it and served me notice of bounced cheque offence. notice says if i dont pay he will take legal action under section 138 with section 141. In notice he falsly claims that as part of family settlement I am supposed to pay this amount to him. Is this ground admissible under section 138? We have also registered with police that this fraud has occured on the same day of we relalising cheque bounce. What are defense available for me. notice says insufficient funds and withdrawal stopped by drawee.


Asked on 12/04/05, 12:08 am

3 Answers from Attorneys
Jayesh Desai Jayesh Desai

Re: cheque bounce

If you can show that this was gift and not debt - 138 will not apply!

Read more
Answered on 12/04/05, 9:36 am
BANKIMCHANDRA SHAH ADVOCATE DIGVIJAYA CONSULTANCY SERVICES

Re: cheque bounce

UNLESS AND UNTILL YOUR BROTHER CAN PROVE ANY LEGAL DEBT UPON YOU, HE CANNOT SUCCEED AGAINST YOU. ONLY THING IS THAT YOU REPLY IMMEDIATELY TO THAT NOTICE STRONGLY OPPOSING THE CONTENTS AND FILE A CRIMINAL CASE WITHOUT ANY HESITATION AGAINST YOUR BROTHER. CAN CONTACT IN PERSON IF NECESSARY.

Read more
Answered on 12/04/05, 7:16 pm
Pravin Vaidya Independent

Re: cheque bounce

The contention of your brother that the amount was as a part of family settlement nees to be elaborated. Whether the cheque-book was from the a/c in the name of HUF/Company/Firm etc. or individual ? In case individually in your personal a/c then how sec 141 was cited?You need to present your defence if not already done before court effectively interalia showing that there was no consideration

Read more
Answered on 3/05/06, 2:21 pm


Related Questions & Answers

More Banking Law questions and answers in India