My brother took over an agency from a news company, promising payment with post-dated checks. Unfortunately, the account lacked enough funds, leading to a bounced check. Now, the company is demanding the money and has filed a case against me under Section 138 of the Negotiable Instruments Act. Can I be held responsible in this situation?

Apni Law
Apni Law
Law Forum › Category: Cheque Bounce › My brother took over an agency from a news company, promising payment with post-dated checks. Unfortunately, the account lacked enough funds, leading to a bounced check. Now, the company is demanding the money and has filed a case against me under Section 138 of the Negotiable Instruments Act. Can I be held responsible in this situation?
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Apni Law Staff asked 2 years ago

My brother took over an agency from a news company, promising payment with post-dated checks. Unfortunately, the account lacked enough funds, leading to a bounced check. Now, the company is demanding the money and has filed a case against me under Section 138 of the Negotiable Instruments Act. Can I be held responsible in this situation?

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Best Answer

Apni Law Staff answered 2 years ago

As you were not a party to the agreement or the issuance of the check, you cannot be held liable under Section 138 of the Negotiable Instruments Act. The case is against your brother, who is responsible for the bounced check.

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