Legal Question in Employment Law in India

Dear Sir,
I had signed a bond for 2 years with a company and the bond value was undated 2 lakh cheque. I am unable to work in the company due to medical reasons and they are threatening me to join otherwise they will take legal action.
my question is that if i put a stop payment instruction on the cheque can i be still be prosecuted? Also i heard somewhere that cheque given as collateral security(for employment bond) is not covered under Negotiable Instruments Act. Is this true?
Kindly guide me as to what i should do.
P.S: i do not have a copy of the bond paper.

Asked on 7/21/11, 11:16 am

0 users found helpful

0 attorneys agreed

stop payment is also actionable u/s 138 of NI Act. however, you may file a civil suit seeking restraint against the cheque and nullifying the bond.

Answered on 8/04/11, 4:56 am

Keywords

Match Any Match All

Country

State

Area of Law