Legal Question in Criminal Law in India

loan of Rs. 150000/- given repayable by 12 post dated cheques of EMI of Rs.14000/- each on 01.04.2008 and a guarantee was also taken and two post dated cheques of Rs. 75000/- each dated 01.10.2009 and 1.10.2010 were also given with a letter that in case borrower does not pay, creditor can encash the cheque on their dates. 7 out of 12 cheques totaling Rs.98000/- remained unpaid, the guarantee was invoked by letter dated 13.06.2009 demanding the outstanding balance failing which guarantor cheque dated 1.10.2009 Rs. 75000/- would be encashed. On 04.07.2009, guarantor replaced these two cheques with new cheques of same amount and date with a letter of cancellationg of old cheques. But on 27.08.2009 a registered notice was sent by guarantor�s advocate, that my client did not execute any guarantee and no cheques were given to your company, the said cheques were given to original borrower and you should return the cheques to my client within 15 days failing which you will be prosecuted u/s 420 IPC. 1.Whether creditor does an offence u/s 420 if cheque is presented on 01.10.2009. 2.Whether guarantor can be prosecuted u/s 420 on behalf of letter dated 27.08.2009 proving his intention not to pay from the very beginning if liability arises.


Asked on 8/27/09, 5:17 pm

3 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

this is a case of civil nature and a complaint or f.i.r. u/s 420 is of no use. there is civil remedy for recovery and a complaint u/s 138 can be filed for bouncing of cheques.

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Answered on 8/28/09, 2:04 am
KAMAL GROVER

No you cannot prosecuted U/S 420.

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Answered on 8/28/09, 10:35 am
Shrichand Nahar S.V.Nahar, Advocate

Depends on nature of writing make while replacing the cheque.

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Answered on 8/29/09, 2:56 am


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