Will cheque bounce case be valid pending insolvency petition

Dear Sir/Madam, We payed 11 lakhs to a person but he cheated us in the name of selling a land. He took the amount and dint registered on our name. We have valid documents signed by the person. We have filed a case in the police station. The person gave three months time for repaying the amount and gave three blank cheques to us. We came to know that the person is going to put IP (insolvance petetion). Requesting to provide your suggestions on how to tackle this. Will the case stand if we book under cheque bounce case even if he becames IP.

Answers (2)

290 votes

Dear Client,
Filing Insolvency Petition will not absolve from punishing him from offence committed under Dishonour of Cheque. You must present three cheques separately by obtaining three separate cheque dishonour memos and get issue three separate legal demand notices under Section : 138 to 142 of the Negotiable Instruments Act and file three separate criminal cases against him as early as possible. So that he will be punished thrice. If you file only one case for all three cheque in a single case he will be punished only once. Do not delay the matter. Even if he files an Insolvency Petition, it cannot rescue him. He will be punished under Sections: 138 to 142 of the Negotiable Instruments Act. Engage an expert advocate who deals with cases under Negotiable Instruments Act. Act immediately before his filing Insolvency Petition, you must file three criminal cases.

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157 votes

Dear Sir,

Yes. The cheque bounce case will stand if you file it against the person even he becomes insolvent. Please note that cheque bounce cases are criminal in nature and insolvency proceedings are against properties not with respect to an individual. Thus, the insolvency proceedings can only protect a person from civil proceedings i.e., civil detention and civil arrest etc but do not protect the person from any criminal offence. I hope this clarifies.

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