Dishonour of Cheques...

...is an offence.

vskesavan
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  • Chennai, Tamilnadu
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Cheque dishonoring is an offence - consequences.
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Started this discussion. Last reply by vskesavan Jul. 6, 2008.

 

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please sir let me know the any authority or citetion......on Even if the cheque is issued for security or guarantee purposes, if dishonoured, it will attract prosecution U/s.138 of NI Act. The account holder should have the sufficient amount in his…
March 23

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At 10:25am on July 8, 2008, vskesavan said…
thanks sampath, lets make use of it.
At 8:50am on July 8, 2008, Sampath Kumar. V said…
Its amazing Kesavan. It is interactive and very useful to the trial lawyers to tackle the day to day damn situations. Best wishes, you do wonders!!
At 10:54am on July 6, 2008, A BALU said…
Yes . There should be a liability to enforce the penal provision of Section 138 of the negotiable Instuments Act. I add the follwing
What are all the precautionery steps to be taken if the cheque issued for security purposes and for a contigent liablity.

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Security measures taken in Madras High court.

NOTIFICATION No.115/2008



As per the decision of the Hon'ble Security Committee,
comprising of three Hon'ble Judges, the Advocate General and
Presidents/Secretaries of various Advocate Associations and in
order to ensure safety and security inside the High Court
premise t is notified as follows:-

1) With effect from 30.07.2008, at all entry points, the Police
will made a random check of the visitors and their baggages.

2) Entry of taxis, auto rickshaws and private vehicles into the
High Cour… Continue

Posted on July 30, 2008 at 6:17am —

vskesavan

Cheques issued for security etc...

Even if the cheque is issued for security or guarantee purposes, if dishonoured, it will attract prosecution U/s.138 of NI Act. The account holder should have the sufficient amount in his account to honour the cheque on the date of issuing of the cheque itself. Even though this is not followed in today's transactions, atleast the drawer should maintain sufficient balance of cheque value on the date of cheque as precautionary measure. Further, he should give stop payment advice to the bank concer… Continue

Posted on July 6, 2008 at 11:44am —

vskesavan

Mandatory requirements....

Penal provision under Sec.138 of the Negotiable Instruments Act could be attracted only when the complainant proves that the cheque in question was issued for discharge in whole or in part of any debt or other legally enforceable liability. In the absence of any proof of debt or legally enforceable liability no criminal intention could be attributed to the accused.

Posted on July 5, 2008 at 4:19pm —

 
 

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