Prasad 26 May 2018

Check bounce - demand notice

Dear Experts

I had loaned a person known to thru cheque 3 years back and received monthly interest for 11 months in my Bank account and have paid income tax for the same.

But for the past 2 years the debtor stopped paying interest and have been requesting time. Also I have promissory note from them and also a cheque for the amount I loaned. As the promissory note is expiring (Limitation: 3 years), I told them to keep the money in the bank and that I'm going to deposit the cheque.

That cheque bounced and I sent a demand notice.

For this, their advocate replied that I did not give any money to them.

I'm planning to file a case under Sec 138 NI Act.

Qn: What are the issues that I will face in case they don't accept and how should I prove? How long will the case run?

Thanking you!!

Reply Follow

3 Replies

Adv Deepak Joshi +917017821512 (Advocate) 27 May 2018

Please share copy of promissory note at Deepakworkjoshi@gmail.com. After going promissory note will advice accordingly.

Aman chawla (DELHI HIGH COURT ADVOCATE) 28 May 2018

Originally posted by : Prasad
	Dear Experts I had loaned a person known to thru cheque 3 years back and received monthly interest for 11 months in my Bank account and have paid income tax for the same. But for the past 2 years the debtor stopped paying interest and have been requesting time. Also I have promissory note from them and also a cheque for the amount I loaned. As the promissory note is expiring (Limitation: 3 years), I told them to keep the money in the bank and that I'm going to deposit the cheque. That cheque bounced and I sent a demand notice. For this, their advocate replied that I did not give any money to them. I'm planning to file a case under Sec 138 NI Act. Qn: What are the issues that I will face in case they don't accept and how should I prove? How long will the case run? Thanking you!!

Sir, you just need to prove that the payee had issued the cheque in discharge of his legally recoverable debt, and you are within the limitation. That's all you need to prove. If you still need any guidance you can contact me.

Thanks,

Regards,

Aman Chawla

P. Venu (Advocate) 28 May 2018

How is that you could present a cheque to the Bank after a period of three years! Presently, the validity of a cheque is only for a period of three months> So also, what is the amount of the cheque?