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Rohit   16 January 2024

Time line for cheque bounce notice and its reply

I have two questions for any one who can guide me

1) Should a cheque bounce notice be sent within 30 days of receipt of return memo or served within 30 days?

2) Should the reply of Cheque bounce notice be sent or served with 15 days of receipt of the notice?

Its urgently. Please someone help. Thank you



Learning

 15 Replies

Dr. J C Vashista (Advocate )     16 January 2024

Date of return memo shall reckon for issuance of demand notice.

It is advisable to reply the notice within 15 days of receipt.

Advocate Bhartesh goyal (advocate)     16 January 2024

 ( 1 ) Notice u/sec 138 b of N.I.Act ( cheque dishonour notice) is to sent within 30 days of receipt of return intimation.

 ( 2 ) Reply of notice is not mandatory its discretion of drawer.

Rohit   16 January 2024

Date on return memo is 4th Dec. 2023 , day of dispatch of notice is 2nd Jan 2024 and notice was delievered on 6th Jan. 2024.

Also on the notice there was mistake of spelling of complainant company instead of M/s Bhardwaj Clinic it is M/s Bardwaj Clinic. The name of the cheque is M/s Bhardwaj Clinic but name on the notice is M/s Bardwaj Clinic.

Will this be considered a typographical error or can I say that only the person to whom cheque is drawn can issue a notice and since cheque was not drawn to M/s Bardwaj Clinic , the notice is not valid.

Also please help regarding dates of deleivery and dispatch of notice

T. Kalaiselvan, Advocate (Advocate)     16 January 2024

The spelling mistake in the notice is a typo and negligible.

You don't concentrate on that for now.

Otherwise, the notice sent was in time, you may wait for the compliance for 15 days and then plan about initiating cheque bounce case as per procedures.

Rohit   16 January 2024

Sir today I received reply to my  notice from the party through its advocate . The says

" That Section 138 clearly mentions that only the drawee of the cheque can send a legal notice directly or through its advocate and since the name on the cheque and the name on the notice are different, hence notice is not accepted and is not in terms with section 138. Also there is no legally enforceable debt between xxxx and bardwaj clinic"

Can I still file a case agaisnt them?

 

Dr. J C Vashista (Advocate )     17 January 2024

Yes, you should move and file complaint u/s 138 NI Act, 1881.

Besides this, you can / should also file a suit (civil) for recovery of cheque amount under Order XXXVII Rules 1 & 2 CPC, 1908.

Moreover, you can / may also file a criminal complaint u/s 420/ 468/471/34 of Indian Penal Code, 1860 

1 Like

Namit Mehta   17 January 2024

Sir in case of section 138, can other suits be filed aling with u/s 138 NIA Act? 

T. Kalaiselvan, Advocate (Advocate)     17 January 2024

The reply given by his advocate denying the allegations is a usual procedure, it will not prevent you from proceeding with the proposed criminal complaint under section 138 NI act.

Simultaneously you can file a summary suit also for recovery of money 

Dr. J C Vashista (Advocate )     18 January 2024

Of course you have the options of proceeding simultanously. 

Sudhir Kumar, Advocate (Advocate)     18 January 2024

S/138 NI Act doe snot bar other remedies.

Rohit   18 January 2024

The reply to the notice totally focus on the spelling mistake done in the name. I am owner of Bhardwaj Clinic but the lawyer typed bardwaj clinic in notice. The reply to the notice attached a screenshot of GST Portal of Bardwaj clinic with their GST Number and said that they have spoken to Bardwaj clinics owner and he is claiming no cheque bounce and notice sent by him.

They are also saying that since name of the drawee on cheque and notice are different. Section 138 is not applicable. Will the spelling mistake in the name play a major role in my case?

Namit Mehta   18 January 2024

I think since only the drawer of the cheque or through its advocate can send a notice. In your case section 138 will not be applicable. 

Dr. J C Vashista (Advocate )     18 January 2024

Spelling mistake shall not affect the prosecution u/s 138 of the NI Act, 1881

Namit Mehta   18 January 2024

As per my understanding of what you have written - Bhardwaj Clinic and Bardwaj clinic are two different legal entities with two different GST numbers 

The accused was asked by Bardwaj clinic to pay XXX amount in 15 days failing which he will be charged with section 138 NI Act 

He called Bardwaj clinic which denied any cheque bouncing and notice. 

Since the accused was not able to confirm any notice by Bardwaj clinic I think typographical error will be very costly for you .

The notice can also be termed as vague, ambigues and Omnibus because it does not clearly indicate to whom the payment needs to be made .

Same is the case when amount which is 

 due is not clearly mentioned in the notice than the notice is termed as omnibus notice . 

 


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