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Law Firm Name : Sajith Paul Mathew

Country : India

City : Ernakulam

Area : Kochi Airport


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Practicing Since :  2000

Qualification : LL.M

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Enrolment No Enrolment State Enrolment BAR
K/1667/2000 Kerala Ernakulam

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Subject :  CHEQUE DISHONOURED PRESENTED BY THIRD PARTY

Question :  NEGOTIABLE INSTRUMENT. A BANK CHEQUE HAS BEEN ISSUED IN FAVOUR X BY Y (ORIGINAL OWNER OF THE FIRM). IN TURN X ENDORSED THE CHEQUE FOR PAYMENT TO Z. NOW Z IS THE OWNER FOR THE PAYMENT. AT THIS POINT, CHEQUE WAS PRESENTED BY Z AND WHICH WAS DISHONORED DUE TO INSUFFICIENT FUNDS. IS IT POSSIBLE TO SEEK JUSTICE FROM THE COURT THROUGH FILING A SUIT BY Z ON Y (OGINIAL ISSUER OF THE CHEQUE) TO GET PAYMENT ORDERS.

Answer by Sajith Paul Mathew :  In this case Z has to prove that he has got an legally recoverable claim against Y for getting a favorable result. More over in the above question it stated that Y has issued the cheque in favour of X. So as far as Z is totally stranger to Y. If Y through a written consent agrees to take up the liability of X towards Z, then Z can proceed against Y by filing a suit for money alone and no S.138 proceedings will stand against by Y.