Can a cheque given as security be considered U/S 138

I have given some money to a person and for the security purpose he has given me a cheque. But now he is not giving me the money and also the cheques are bounced and returned from the bank. Now can I file a case in the court of law. What can be the result for this??? Now as per the Negotiable instruments act, 1881, section 138, the cheque issued for only debt or legal liability can be filed in the court of law. But is my case falls in the above act or not???

Answers (1)

271 votes

You can file the case U/s.138 of Negotiable Instrument Act. As your friend have borrowed the money from you assuring that he will return the same. In exchange he has given you the cheque which got bounce. So as early as possible send the notice to the person within the 45 days of the date of return of the cheque. Send legal notice via advocate in your area. If he doesnot reply within 15 days of the notice issued. Civil case can be filed against him.

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