Legal Question in Banking Law in India

A issued 10 post-dated cheques to B towards repayment of loan, in installments. If those cheques get dishonoured due to insufficiency of funds, whether section 138 of N.I. Act is attracted ? Please examine this in the light of Judgment dated 20-07-2010 of Bombay H.C. in Joseph Vilangadan Vs. Phenomenal Health Care Services Ltd. & Anr. case.(Criminal Writ Petition No. 2243 of 2009).

Please provide supporting Judgments if any.


Asked on 11/14/12, 12:21 am

3 Answers from Attorneys

Yes, in such cases the prosecution u/s. 138 N.I.Act is maintainable as on the date mentioned on cheque the amount become payable and if the cheque dishonour for any reason then prosecution u/s. 138 N.I.Act is attracted. (Supreme Court)

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Answered on 11/14/12, 3:58 am
J. Radhakrishnan independent Practice

Yes there can be prosecuting. No need to give any citation.

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Answered on 11/14/12, 7:20 am


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