Partner misuses the company cheque.
I am an engineer and started a pvt. ltd company with an investor with he being the director with 60% shares and me with 40% shares. The company account was operated jointly. However some months back i had given a blank cheque and asked him to pay the vendor. However he did not use the cheque and now when there were some issues in the company he misused the cheque and made it bounce by showing a payment of 2150000. I got a notice from the lawyer of the client against whom the payment was made that the company had taken a loan of 2150000 fro his client and we need to return it back within 15 days failing which legal action under Sec 138 will take place.I am very worried as there have been no transactions of this magnitude and don't know what to do. Do I face arrest?
As gathered from your query, your company was to make a payment to a vendor of a certain sum but your partner has given the cheque with inflated amount deliberately which has bounced. First of all it is clarified that if the cheque has been issued by the company then if there is any liability, your partner is equally liable in criminal case.
So it can not be said that your partner has misused the cheque to your prejudice only. As far as an action under section 138 NIA is concerned, primarily there are apparent lacuna, and I suggest you hire a good advocate to look in to it.
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