Nitish Banka

    • Cross Examination in Cheque Bounce Cases NI 138

    If you are accused in a cheque bounce case and reading this article then i hope this article may be helpful to you. I will try to explain you in a very simple language as to how the cross examination in cheque bounce cases takes place.

    If you are looking for a fixed strategy then I would say that there is no fix strategy to defend NI 138 it changes as per scenario. So we will be discussing different scenarios as mentioned below.

    The strategy of cross examination depends on the defense you will be take. The court only expects at first why your signed cheque is in the hands of complainant who is claiming to be that you owe him money.

    So you first have to convince yourself and then convince the Judge. So before cross examination one should ask this question “what is your signed cheque doing in the hands of the complainant?”

    Now if you can’t answer this question then you don’t have a case try to settle the dispute else read further…

    Scenario-1 Cheque issued towards friendly loan…Defense That your friend misused your trust and misused cheque.

    Again here first you have to give an explanation about cheque given to the complainant on what condition and then cross examine…

    Q1. What was the mode of payment of loan?

    Q2. If it is cash can he show bank withdrawal?

    Q3. If cash amount is huge then what was the source?

    Q4. Has he filed ITR?

    Q5. Has he mentioned amount in the Balance Sheet?

    Q6. Is Balance sheet is with voucher or acknowledgement?

    Q7. Is balance sheet audited?

    Suggestion: You have not extended any loan and you have misused the cheques.

    Scenario-2 Security cheque not given in lieu of debt..Defence Security Cheque

    Q1. How many years are you dealing with the complainant?

    Q2. How do you settle the accounts?

    Q3. Do you take security cheques?

    Q4. Do you maintain statement of accounts?

    Q5. Can you show us the statement of account?

    Q6. Where in the statement of account accused owe the cheque amount on that given day?

    Accused did not owe you anything you have misused his security cheques

    SO these are the two scenarios which are common in 80% cases.