I seek your guidence on the matter of sec. 138

I had taken a personal loan from a private finance company some 2
year ago on the advance cheque of hdfc bank ltd. however some 11-12
months ago hdfc bank had clsoed my said saving account for non
maintenance of adquate balance without informing me.

Now my lender finance company still depositing said pdcs to their
bank and each time it returns with a "account closed " i had last
cleared all my dues upto august 2005 and paid outstanding to the
company. now again i just received a legal notice from the lender
finance company they again deposited march 2006 cheque of my hdfc
bank and apparently it returned with the reason of account closed.
now the legal advocate of this company had issued me a notice u/s.
138!

My question is that when the lender finance company is well aware
that the account is already closed then still they are depositing it
just to collect a check bounce fees of Rs. 500 on an EMI of Rs. 863
is it legal ?

Again when they are well aware to the fact that the account is
closed and it will not be paid, is it a punishable crime under
section 138 ? as far as I knows that section applicable only in a
case where you have promised that the cheque will not be bounce due
to unsufficient fund . now when the account is closed and that too
closed by the bank itself then how one can perform this promise ?

I am some one over here surely will guide me on the subject matter

Thanks a lot

Did you inform in writing to the Private company that
your account is closed in HDFC and no more shall the
PDC's be valid ?

Did you tell them that if the cheques gets bounced
because of the a/c closing you shall not be
responsible ?

Did you deposit other PDCs with them in exchnage of
HDFC A/C which got closed ?

If no, then I think they are right in taking action.

What action can they take and what you can fight
against is not known to me.

There are other members here who can guide you.

In response to their legal notice you can send them a legal notice
for harassment and playing with the act 138 for their own illegal benefits, you
can ask them to pay you a reasonable amout for the defamation and harassments

For bouncing of a cheque like insufficient balance, closing of account is also
a penal objection. at whose instance the account was closed is immeterial to
your finance institution. The reason for such closing is a problem with you and
your banker but not with your banker and the said financial institution.

the notice you have received is a statutory notice hence you have to reply for
the same. therefore in the said reply you have to give the hdfc's unilateral
action in closing your account and see that it will be paid to the financial
institution soon to avoid any criminal case.

It is not an offece or wrong on the part of the financial institution to
deposit the cheques to your banker as long as they are allowed to deposit under
law. To stop the deposit by your financial institution is to pay their amount
and take return of the cheques you have given to them.

bye

Hi I have taken loan from Barclays bank. I have given ECS from my other A/C and also provided 5 cheques for security. They presented one cheque and it got bounce because for last few months I am in financial crisis. I still managed funds and paid through cash. Even after paying cash they filed section 138 against me. I have cash reciept of that month EMI. I never been into legal dispute. Is there any way out? Kindly advice as I am really helpless.

i have case against me., under section 138 of the NIA ., but the cheque used against me is not mine? please give u r guidence

Dear Sir,
I had personel loan with Fultron India from last 2 years. initlailly i had paid ecs at the time. but after start of recession period i had lost my job. due lot of probelms(open surgery of papa, TB treatment of wife etc, unemployment) i could not able to fullfill my families basic need too. still collection agent were harassing me & my family to pay monthly installment. but i could not able to give that to them. so i shifted myself to other palace so that to reduce tension & bothering to my neighbour. at last week i came to know that they have filled case against me of check bounce & have to stand in court.
now still i donnot have job & money to hire some budy for me.
pl let me have some helpfull info about what should i do?

Originally Posted by Unregistered

In response to their legal notice you can send them a legal notice
for harassment and playing with the act 138 for their own illegal benefits, you
can ask them to pay you a reasonable amout for the defamation and harassments

This is rubbish since the payer's first duty is to intimate the payee / drawee not to present the cheques. If still the drawee deposits and get the cheque bounced, it is the legal binding needed by the drawee for further proceeds to recover the amount. Unless one follows his/her obligations, law can not blamed since Law is made for the peaceful co-operation and not for any war or to help criminal proceedngs but amicable settlements.

I ahve availed a aloan from Ing Vysya bank for property purchase(agri land) and the loan turned NPA and the bank is taking action against me via Revenue recovery,DRT, securitisation all parallelly.
The Post dated cheques I have given to the bank at the time of taking loan has been presented and got retunrned by the bank and the bank has filed a criminal case aginst me under setio 138.
Pl advice me as to what to do ..

Concerned party has to reimburse money for which services have not been provided.However the cheque has bounced .I have sent legal notice under Sec 138.Do cases under this section get solved quickly and what is the best way forward.