Gave cheque as security against loan but now i'm bankrupt

750 votes

Since, it's an admitted liability, you shall have to pay amount.
Cheque Bounce Case u/s 138 has provided punishment of 2 years or double cheque amount, or
If you don't have funds, properties,both movable and immovable or any security whatsoever, you may file bankruptcy....
If you can arrange funds, pay it in installments

Advocate Urfee Haider LawRato

916 votes

Was it a post dated checque ? Is the amount mentioned in the checque ? Has he presented the chechque in bank ? I need all the details
Above all since the checque was given to him as security.the checque given makes you liable . Was there any writtern agreement for the loan taken . If not then there are chances that we can prove that we are not liable .
For any help further we need check all the documents and with the details of the case filed.For any further assistance please contacts us at the mentioned contact no.

Advocate Samridhi Gupta LawRato

897 votes

You should face the trial and put your actual position before the hon'ble court through a competent lawyer with evidence of bankrupty and other which your lawyer deem fit. Let the hon'ble decided.
Thanks

Advocate Parveen Kumar LawRato

734 votes

Sir, if you declare your self as bankrupt after cheque issued .. then you will be safe otherwise not. Because law is very clear that once you declare yourself bankrupt that no crime in the eyes of ..

Advocate Sanyam Jain LawRato

777 votes

Sir, as per the limited information provided by you and as far as i can understand the issue, it is suggested that One of the main ingredients of the offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881, is that the cheque which is dishonoured must have been given “for the discharge, in whole or in part, of any debt or other liability“.

The language of this legal provision is very clear. The offence of dishonour of cheque is made out only if the cheque had been issued for the discharge of any debt or other liability. If the cheque had been issued as a “security”, and if such cheque bounces, no offence is made out under Section 138 of the Negotiable Instruments Act.

So you can take this plea, however should explain your query more to make me understand the whole issue.

Advocate Vinay Vats LawRato