Yes, you can recover interest and legal fees from the dishonoured cheque in a summary cash recovery action, but not in the section 138 proceeding of the N.I. Act. However, in accordance with Article 138 of The N.I. Act, the award may be greater than the amount of the cheque. A cheque is defined by the Negotiable Instruments Act, and if a cheque is refunded and the liability for the cheque is not fulfilled, this creates an offence under Section 138 NI Act, maintaining the presumption in Section 139 of the NI Act is a rebuttable presumption and can be discharged by the accused if he can prove that there is no legally enforceable guilt at the time of issuance. of the cheque. Now, the security check is on a basis other than the regular check, but the security check remains a check that attracts the provisions of sections 138 and 139, although it can be thwarted. In principle, a security check is issued to ensure the execution of the contract and, in case of infringement, the security check can be made. Does the offence now create a legally enforceable fault, which must be examined and established by various courts, which, in the event that the complainant has not been able to prove his case, that the security cheque issued to him must fulfil liability. Therefore, in the absence of liability to the complainant, the offence referred to in section 138 of Act N.I. is not drawn against the accused.
It is customary to keep cheques blank for security reasons, whatever he needs to sign correctly. If you deliver under invoices to order, no separate agreement is required for the transaction. When the case arrived at the Supreme Court, he said: “We think the Supreme Court has turned the whole case upside down. It is apparent from the copy of the complaint that the signed cheques were given by the accused to the complainant. The cheques were made for security reasons, it is a matter of defence. Moreover, it is not about debt relief or liability, but it is also about defence. The facts relevant to the defence must be proved – that such a guarantee cannot be treated as guilt or other responsibility of the accused. That would be a good topic.
We say this because the delivery of cheques as security would not in itself exempt the accused from the exemption from liability resulting from those cheques. Summary appeal is a civil procedure initiated to recover funds due on the basis of a written agreement, cheque, etc. These procedures are different from the normal recovery action, in that the responsibility for proving that the plaintiff is not required to recover an amount rests with the defendant for whom he must receive court support. 13. How valid is the cheque in everyday business? Please note that if you enter the date on the cheque, you must present the cheque within 90 days. Depending on the duration of your loan, you can enter or not the date of the check. In this case, the court can heavily burden you if the cheque issued has been misused. In this case, a complaint to the police is useful, because a complaint and a freeze on payments are effective. You can contact the ITR of omplainant or proof of payment of the loan In the case of Joseph Vilangadan (Supra), the facts were that the directors had given certain cheques as repayable guarantees to ensure the proper performance of their work. In the facts and circumstances, it was found that there were no debts or debts and that cheques were issued exclusively for security purposes and therefore no deed could be maintained under section 138 of the Act.
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