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Brother gave my post dated cheques to company. It bounced.Am i liable?


In Cheque Bounce Law

My brother had taken an Agency from a News company and had issued my post-dated cheques towards its payment. Due to insufficient balance in the bank account, the cheque was dishonoured.

The company issued a notice to me claiming the amount of the cheque. Now the company has filed a complaint against me under Section 138 of the Negotiable Instruments. Please guide me whether in such circumstances can I be held legally liable?

Answers (1)


175 votes

If you are able to prove that you personally did not owe any legally recoverable debt to the company, and that the cheques in question were misused and further that you had nothing to do with the agency, then there are good chances that the complaint against you can be got dismissed.

However, we would require to go through the agency agreement, the contents of the notice / complaint to exactly ascertain your defence in the complaint because there is presumption in favor of the company that if they have cheques issued by you, there must be some amount payable by you to them. Hence, documentation aleady done is essential to ascertain your stand.


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