A case was filed against “A’ Company and its 2 Director alleging that that the first accused had entered into Hire Purchase Agreement with the Complainant. The said cheque was signed by 2nd and 3rd accused in their capacity as the Joint MD & Director of the 1st accused company. It was alleged that on 12.12.1996 the Complainant sent a Reg. Notice to the accused calling upon to pay and the said Notice was received by the accused and not made any payments so far. It was alleged that the accused have committed an offence punishable u/s 138 & 141 of the NI Act. It was alleged that the present complaint is filed to punish the accused for the said offences and the same is being filed in time.

That the said allegation “the first accused had entered into Hire Purchase Agreement with the Complainant and not supported by any documentary evidence filed in the List of Document filed the Complainant.

The fact is that the Complaint Company had entered into a Lease Agreement with 1st accused company. As such, the allegation that the first accused towards discharge of the part liabilities in the Hire Purchase transaction is false.

That the Branch in-charge of this account of the Complainant Company had been receiving the payments on this account regularly and acknowledgments were given by him on behalf of the Complainant Company for each of the cheque realised and never returned back cheques even after the payments were made. The General Manager of the Complainant Company had made written submission on the letter assuring to withdraw the said case once received the payment on the cheque. The payment was made by DD based on the said assurance and received the acknowledgment from the Branch in-charge of this account and the accused company was given to understand that the said case was withdrawn and all the relevant originals were given to the Advocate of the accused company to file before the Court. All this happened in 1998 and the Advocate of the accused company had expired. Now suddenly in the year 2012 the accused company received summons from the Court.

Please advice the legal position on how to contest in the court u/s 138 & 141 of the NI Act.

Regards,

Kishen