Q: How would the payment be made to complete the debt ?

Ans: The summary of rules to complete the debt(in order) are as follows: 

1. Indicated by debtor: The payment of debt to invoice as indicated by debtor.

2. Not indicated by debtor:  If the payment to debt is not indicated by the debtor, the amount will be appropriated by creditor ( except disputed debt ). 

3. Neither party made appropriation: If the payment to the debt is not indicated by any debtor or creditor, the debt will be distributed in order of time.

4. Time of two or more debts is same: If the time of two of more debts is same, the debt will be distributed proportionately.

5.  Principal and Interest:  First the interest will be paid and then the principal will be paid.

Comments

Post a Comment

Popular posts from this blog

Q: What is the significance of issuing account payee cheque?

Ans: While issuing the cheque, a drawer should draw two parallel lines on its left side and should write 'account only' in between them. By doing this, the cheque becomes an account payee cheque and the payment will be made only in the bank account of the payee. In case of any type of fraud, the payee can be traced. Having the above- mentioned precautions, a drawer can be avoided from fraud to a great extent.
Read more

Q: Elaborate the citation of Sasseriyil Joseph vs Devassia on 22 September, 2000 ?

Ans:  Sasseriyil Joseph vs Devassia on 22 September, 2000. The Kerela High Court held that Section 138 of negotiable instrument act is attracted only if there is legally recoverable debt and it can not be said that the time barred debt is legally enforceable debt. For the reasons stated above, the Kerela High Court finds no reason to interfere with the order of acquittal passed by the learned Additional Sessions Judge.  The Kerela High Court sees no infirmity in the judgment of the lower Court. This appeal is groundless and is liable to be dismissed.
Read more

Q: How would section 208, 209 and 210 of IPC be implemented in dishonour of cheque ?

Ans: A and B collude together and A issues the cheque for X Amount, which gets dishonored.  B files the complaint under S.138, and without proving the liability gets the benefit of presumption under S.139, now both A and B enact the drama of compounding under S.147 of NI Act, matter closed, but in principle A has violated IPC S.208 and S.210 and B has violated IPC S.209. So, if rightly B is asked to prove the entitlement to become the holder, before presumption can be granted to him, surely he would fail and lawfully both A and B can be prosecuted under IPC S.208, S.209 and S.210 if required.
Read more