PROMISSORY NOTES - PROBLEMS -1

• WHAT IS PROMISSORY NOTE = AN UNCONDITIONAL UNDERTAKING TO REPAY THE DEBT WITH OR WITHOUT INTEREST, ON DEMAND TO THE PLAINTIFF [ WHO FILED THE SUIT FOR RECOVERY]IS CALLED A PROMISSORY NOTE; WHAT IS DEBT = DEBT MAY BE PRESENT OR PAST CONSIDERATION ; MAY BE CASH OR KIND ,SHOULD NOT BE TAINTED WITH ILLEGALITY , BORROWED OR RECEIVED OR TAKEN BY THE DEFENDANT FROM THE PLAINTIFF OR FROM HIS AUTHORIZED PERSON; PROFORMA OF PRO-NOTE = THERE IS NO FIXED PROFORMA FOR PRO-NOTE. THE ESSENTIAL WORDS ARE " I, PROMISED TO REPAY THE DEBT ON DEMAND TO YOU OR TO YOUR ORDER, WITH OR WITHOUT INTEREST"; GENERAL MISTAKES = CORRECTIONS OR OVER WRITINGS IN DATES, AMOUNTS, INTEREST COLUMNS . EXCEPT IN INTEREST COLUMN, OTHER COLUMNS CORRECTIONS OR OVERWRITING MAY BE CONSIDERED AS MATERIAL ALTERATIONS ; REQUIRED STAMP = THE MAXIMUM VALUE OF THE STAMP IS 25 PAISE;AND THE PRO NOTE MAY BE ENGROSSED ON NON-JUDICIAL STAMP ALSO. NOT ONLY REVENUE STAMP, A NON-JUDICIAL STAMP OF ADHESIVE ALSO CAN BE AFFIXED BUT NOT POSTAL STAMP. HOW TO PROVE THE PRO NOTE = BY PRODUCING THE PRO NOTE AND ALONG WITH PLAINTIFF, ONE ATTESTER OR SCRIBER MUST BE EXAMINED WHEN IT WAS DENIED.; INGREDIENTS TO PROVE = EXECUTION, PASSING OF CONSIDERATION WHEN DENIED BY THE DEFENDANT ; HOW TO DISPROVE = BY EXAMINING ATTESTER OR SCRIBER WHEN CONSIDERATION NOT PASSED AND IN CASE OF FORGERY BY EXAMINING THOSE PERSONS OR BY SENDING TO EXPERT OPINION;

TIME BARRED DEBT - CHEQUE BOUNCE

LEGALLY RECOVERABLE DEBT, WHICH IS NOT TIME BARRED DEBT - NOT ENFORCEABLE IN TERMS OF EXPLANATION TO SEC.138 . MERE ISSUING A CHEQUE WITHOUT ANYTHING MORE WILL NOT REVIVE A TIME BARRED DEBT AS PER SEC.25[3] OF INDIA CONTRACT ACT AND SEC.18 OF INDIAN LIMITATION ACT . SO WHEN THE CHEQUE WAS BOUNCED NO CASE IS MAINTAINABLE-2010[1] ALD CRIMINAL [BOM.NOC21]14.

CHEQUE FOR OTHERS DEBT

WHEN THE COMPLAINANT FAILED TO ESTABLISH THAT THE CHEQUE WAS ISSUED FOR THE DISCHARGE OF ANOTHER DEBT, THE CHEQUE BOUNS CASE IS NOT MAINTAINABLE-2010[1] A.L.D. CIRMINAL[BOM.NOC19]13. AND FURTHER MORE THERE IS NO HURDLE EITHER IN EXPLANATION OR IN SECTION THAT THE DEBT MUST BE OF A PERSON WHO ISSUED A CHEQUE . PROVIDED THE COMPLAINANT MUST SHOW AND CLEARLY PLEAD FOR WHICH LEGALLY ENFORCEABLE DEBT , THE CHEQUE WAS ISSUED 2010[1] ALD CIMINAL [KER.NOC1] 1

NO SECOND TIME PRESENTATION OF CHEQUE

AFTER ISSUING A DEMAND NOTICE OF DISHONOR OF CHEQUE AND WITHOUT FILING COMPLAINT WITHIN TIME AND AGAIN PRESENTING CHEQUE FOR SECOND TIME AND AFTER DISHONOR AGAIN ISSUING A DEMAND NOTICE AND FILING COMPLAINT IS A BAD AND AGAINST THE LAW AND AS SUCH NOT MAINTAINABLE - 2010[1]A.L.D. CRIMINAL AP 256.

BANKER - COOPERATIVE SOCIETY

A CO-OPERATE SOCIETY THOUGH IS NOT A BANKER OF REGULAR NATURE DOING BANKING BUSINESS FOR PROFITS, STILL, THE CO- OPERATIVE SOCIETY COMES UNDER THE DEFINITION OF BANKER UNDER SEC. 3 OF TH E ACT. SO WHEN A CHEQUE IS PRESENTED TO CO-OPERATIVE SOCIETY AND WHEN IT IS BOUNCED DUE TO INSUFFICIENT OF FUNDS, THE ACCUSED IS LIABLE TO BE PROSECUTED-2010[1] A.L.D. CRIMINAL [KARN.NOC 3]13

1[CHAPTER XVII] OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS 138. Dishonour of cheque for insufficiency, etc., of funds in the accounts Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall without prejudice to any other provisions of this Act, be punished with imprisonment for 2["a term which may extend to two year"], or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless- (a) The cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier. (b) The payee or the holder induce course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer, of the cheque, 3["within thirty days"] of the receipt of information by him from the bank regarding the return of the cheques as unpaid, and (c) The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Explanation: For the purpose of this section, "debt or other liability" means a legally enforceable debt or other liability].