Legal Question in Banking Law in India

cheque bouncing

sir, my brother work a non banking company as a recovery agent. company claim of my brother Rs. 70000, so my father issue of cheque in fever of co. for security. but co present the cheque and bouncing the cheque. co. send notice of my father for 138 NI act. please advise me.


Asked on 12/13/08, 5:33 am

5 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: cheque bouncing

Reply the notice immediately thru an advocate stating above facts.

Read more
Answered on 12/15/08, 9:34 am
J. Radhakrishnan independent Practice

Re: cheque bouncing

Your father in issuing the cheque for the amount payable by your brother to the NBFC has guaranteed your brother's liability which is co-extensive with that of your brother. If the cheque bounces your father can be successfully proceeded under Sec.138 of the N.I.Act. Better have the matter settled with the company and getting an acquittance both for your brother and father. Honesty is always the best policy.

Read more
Answered on 12/14/08, 8:08 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: cheque bouncing

The facts are not sufficient.

You may reply to the notice in 15 days from the day of receipt or else settle the matter amicably with the non banking company.

Read more
Answered on 12/13/08, 6:25 am
Nasir Butt Nasir Law Associates

Re: cheque bouncing

From the bare perusal of the facts narrated, it is found that your father being guarantor is no more liable if his cheque is presented and bounced. However you may initiate proceedings against company as to what authority company had presented the cheque which was only meant for Guarantee only?

Read more
Answered on 12/13/08, 7:47 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: cheque bouncing

It will be better if the matter is compromised by payment of the cheque amount.

Read more
Answered on 12/13/08, 1:21 pm


Related Questions & Answers

More Banking Law questions and answers in India