Ongoing case - personal loan in my name and a few cheques were bounced - Who will hire me?

I have a personal loan in my name, and a few checks were bounced at the beginning. The bank has a court case against me. The case will only be closed if I pay off the remaining loan amount, which is almost 4 lacs. I joined an MNC last year, and within one month, I was asked to leave, stating the BGV failed due to the case. HR gave me one week to clear the case, which was obviously impossible. If MNCs don't hire a person based on such a case, how is the person supposed to earn? Can anyone suggest good-paying BPOs that would hire me despite this case? I have been jobless for the last 5 months due to COVID-19.

Hi Nisha,

I can only sympathize with you, viewing your helpless situation. I don't know how you manage your affairs. If you are really serious, unless you clear your pressing commitments, including the court cases, it's impossible to ensure positive feedback from BGV to bag a decent job commensurate with your qualification and experience. Moreover, improving CIBIL credit rating is also an important factor. We have no quick-fix solutions to your problems described in your post.

Dear Nisha,

As Mr. Kumar S has said, it is difficult to provide a solution to your challenge. Indian jurisprudence works on the dictum, "no one is guilty unless proved." However, just because the case is going on in court, if an employee is told to quit the employment, then it is a misplaced grandstanding.

Look at our lawmakers. One-third of our legislators or parliamentarians are accused with criminal charges. A person can contest an election, make laws for the country, but being unable to secure employment in a private organization is a travesty of democracy.

I recommend you apply for jobs where a background check is not a serious issue. There are many opportunities in the fields of supply chain management or warehouse management. You may consider applying for those positions.

Thanks,

Dinesh Divekar

Hi Nisha,

I may add, the case of 'Cheque bounced' is a serious issue which will be dealt with in a time-bound manner. When proved guilty of the offence under sec. 138 of the Negotiable Instruments Act, according to Section 138 of the Act, the dishonor of a cheque is a criminal offense punishable by imprisonment up to two years, a monetary penalty, or both. If the payee decides to proceed legally, then the drawer (you) will be given a chance to repay the cheque amount immediately, which is the only way to save yourself. I'm sure you know that. There is a danger of imprisonment looming large. Please hurry up and give top priority to save yourself from this ignominy.

Dear team members,

While honoring the views of experts mentioned hereinabove, I have a faint recollection of having read in an article that the "cheque bounce case" now will not be considered a criminal offense.

As I am not sure about the veracity of this news, I am not trying to give my opinion to the poster.

As an addendum to my earlier post, the subject matter appeared in "The Financial Express" dated June 12, 2020.

Yes, a cheque-bounce case is a criminal offense, but it cannot be said to involve 'moral turpitude.' There is something fundamentally wrong in the BGV process which does not take into account this basic distinction.

Moreover, it is seldom that the accused in a cheque bounce case is punished with imprisonment. Currently, the punishment is restricted to a fine and imprisonment until the rising of the court.

Dear colleagues,

To my knowledge, sec.138 of the Negotiable Instruments Act, criminalizing and associated imprisonment of those found guilty has not been done away with so far. Although the Government of India proposed certain amendments to address this issue, it remains unchanged. Circumstances may vary, but the fact remains that it is still a punishable offense. The Supreme Court also issued a judgment as recently as October 2019, ordering the obligor to either pay more than double the amount owed plus costs/damages or face imprisonment. Copies of relevant extracts and opinions are attached for reference.

From my own experience, I, as the head of finance, had to file around 20 such cases in trial courts during 2012, and all of them are still pending with no progress towards resolution. It is also reported that there are over 300,000 cases awaiting disposal in various courts, highlighting the current state of legal administration in the country. Despite the efforts of law enforcement authorities to reduce delays, there has been no significant improvement. While this issue may not directly relate to the topic under discussion, it could be one of the factors hindering opportunities, and therefore, it should be resolved promptly.

Thank you.

If there are a couple of incidents of cheque bounce, and thereafter all EMIs go smoothly, then visiting the branch and restructuring the loan would be an opportunity, subject to the acceptance of the branch manager. The branch manager will recommend their legal team to withdraw the case. Once the branch resolves the issue, the BGV or CIBIL will return to normal within 30-45 days without any dispute.

Taking shortcuts may offer temporary relief, but in the long run, it can lead to more significant challenges and complications.

Dear Madam,

In my personal view, a cheque bounce could be due to genuine financial inability to pay and need not be held against a prospective good candidate. But apart from the merits and demerits of the case, in the given circumstances, you should make utmost efforts to clear the loan by borrowing from a relative or friend and clear the hurdle. We know you must already be trying, but don't give up hope. Also, don't get intimidated by the punitive aspects discussed here.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

The finance ministry has proposed to decriminalize a host of minor offenses, including those related to cheque bounce and repayment of loans, in as many as 19 legislations to help businesses tide over the crisis caused by the coronavirus pandemic.

The 19 legislations i ..

Read more at:

https://economictimes.indiatimes.com...campaign=cppst

There have been considerable counters to the FM's proposal to relax certain provisions regarding cheque bounce cases on the plea that decriminalization could very badly affect the prospects of inflow from the debtors. Let's see what happens.

I really appreciate all your responses. But somehow all this has now scared me more about imprisonment and all. There are so many people out there who did fraud cases of crores and still sitting and enjoying their lives. Here I am struggling to clear the loan but ain't getting any job. I had joined a startup but salary wasn't on time, and I never got the full salary there. I had come to a 30k salary in the startup from 45k, which I was getting in an MNC. I just don't know what to do now. I tried my best to get things sorted. But I am helpless now, and I give up. Thank you all for your time.

The wrongdoing under NI Act 138 is criminal only in the technical sense. The proceedings are that of a summary trial, that too, not a police report but on a private complaint.

In fact, it is more or less a civil wrong; the criminal trial only exists because of the specific legislation.

Moreover, it cannot be said that the offense under this provision involves mens rea, i.e., the guilty mind. It is settled law in service jurisprudence that, in the absence of moral turpitude, even a conviction in a criminal case need not render anyone unfit to be employed or unfit to continue in employment. Therefore, in my understanding, it is unreasonable to take into consideration the proceedings because of the dishonor of a check during BGV.

This is all the more so because more than 90% of the cases under NI 138 are not based on genuine transactions but only because of blank signed and undated checks taken in advance against loans at usurious rates of interest. If so, the matter could be defended very well.

The querist has not furnished the material facts. Anyhow, it can be assured that there is no prospect of imprisonment even if the allegations of check dishonor are proved. Moreover, the offense is compoundable, and if there is really a debt, the matter could be settled through mediation or compromise.