Legal Question in Business Law in India
you sold a shipment of goods abc company and received a bill of exchangefor it.but now you find that the bill has ben dishonoured .can you sue abc company?what would your rights be in a court of law in this scenario?
3 Answers from Attorneys
It is a breach of contract. You may claim bill amount with applicable charges.
Yes you can sue ABC company for recovery of your amount. You can also file a complaint u/s 138 NI Act too.
In my opinion, you may file a civil suit, summary or ordinary, for recovery of the amount of goods on the basis of dishonoured b/e along with interest.
But i am afraid I am not in agreement with my Mr. Sanjay Kalra's opinion about filing a complaint (criminal) under section 138 Neg. Inst. Act. No doubt, B/E is a negotiable instrument, but, section 138 relates to dishonour of cheque. B/E is not a cheque, as the two have been distinctly defined under the act.
Related Questions & Answers
-
Some furniture was delivered by X to A on hire purchase basis so that he could... Asked 8/29/11, 3:06 pm in India Business Law
-
A preference shareholder doesn't have a right to vote on every resolution of company... Asked 8/26/11, 4:59 am in India Business Law
-
If the consideration to an agreement is furnished by a stranger and not by promisee... Asked 8/26/11, 4:51 am in India Business Law
-
An auctioneer can refuse to accept the highest bid is it correct or incorrect? Asked 8/26/11, 4:43 am in India Business Law
-
Define contract and discuss the essential elements required for a formation of valid... Asked 8/25/11, 10:51 am in India Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
