Tarun Bharti (ludhiana) 28 April 2013

Sue a person for cheque

2 years back My father gave money to one of our relatives with some interest ,initially the amount was little but as the man get my father's trust he demanded more money and my father gave him and for the returning the amount he gave a cheque of that amount in proof .now the sun of that money is 34 lakhs ehich is big in number and that person is now saying i dont have money cannot payback you.my father also had a meeting with him and alone some person for mutual agreement for this problem but sill he is not willing to pay.now we have only one chance to get our money is through court.for the detail we have about 10-12 cheque that sum up to the whole amount from the latest cheque book that government issued this year and also have a written proof by him. What should be the procedure to file a case is there any chance we can get our money back?,bcoz in our discussion with him he is saying he had already given us the 16 lakhs of the amount as a interest in form of cheques (may be a any advice from his friend to not return the full money) and he cannot pay the interest anymore so this 16 lakhs must be cut from the 34 laks and he can only pay 8-10 lakhs in installments (8-10k per month) and no one can accept that so the only choice is to fire a case.give us the guidelines how to do that

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5 Replies

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com) 28 April 2013

Dear Tarun Bharti

you have right to file a case against him u/s 138 of NI Act if the cheque will be dishonured

as the section 138 says

138. Dishonour of cheque for insufficiency, etc., of funds in the account. Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid. either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice. to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless-

(a) the cheque has been, presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

(b) the payee or the holder in due course. of the cheque as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Explanation.- For the purposes of this section," debt or other liability" means a legally enforceable debt or other liability.

Feel Free to call

SANTOSHSINGH. (ADVOCATE sardarsena@gmail.com) 28 April 2013

It is not easy and simple to win any case of cheque bounce against your debtor since you will have yo prove lot of things in the court particularlt source of money and IT returns for interest earned.

lakshay (abc) 28 April 2013

if the person attempt suicide after writing a suicide note against the the financer and the financer is having 2-3 cheques and a bond singned by the person then we can do.

Tarun Bharti (ludhiana) 16 May 2013

As i came to know from my parents(my parents never tell me anything about these things they dont to involve me in this as i was giving my final semester exams) that the person had fired a civil case against us with the same story(we actually gave him a money to invest in his business to earn profit) with some modification that me,my mom my father and my sister(she turned to 18 since some months ago) that we were doing a garment import business and he invested the money and gave us a cheques for security(we had two-three cheques with only amount written but without name )without name only amount written on those cheques and now we are not giving him his commission nor his cheque that he gave us for only security to show the payment .so he demanded to mark those cheques as invalid. My father is very depressed about this now bcoz he involve me in this case and my sister and they thing this will effect our future and after that he said us he can take this case away if we are agreed on his proposal that is he will gave us only 21 lakhs instead of 34 lakhs and with 3 cheques each of 65 thousand and he will pay us 65k every month.What we thinks we already had cheques and he is still giving us cheques of low amount.may be its a trap or his game.I have never been in this situation and dont know nothing about these things nr my parents do.can anyone guide what to do .how to approach this now