Bill of exchange

Sweety (Querist) 21 August 2013 This query is : Resolved
one of my client had issued a bill of exchange worth Rs. 10 lacs to a company in July 2011 thru a broker. It further renewed it in the year 2012. the company paid interest amount also thru cheque at the time of the transaction.

the company issued cheques in my clients favour for the aforesaid amount which got bounced back in August 2012. every month broker approaches my client for extension of the period to make the payment, but no payment received till date.

my client issued a statutory notice (not thru advocate) in August 2012, but amount is not recovered till date.

Will the aforesaid matter stand u/s 138 of NI ACT?

Pl advice

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Yudhish Padman S (Expert) 21 August 2013
Dear Sweety,

You have lapsed the limitation time. If you are going to file a cheque bounce case based on that cheque and notice, you would have to give the Court, a feasible reason so as to condone your delay for the same.

Instead, I would recommend to make a fresh claim, fresh representation of cheque and if the same bounces, a fresh notice and proceed with that. Kindly do proceed and follow up with your lawyer this time and ensure that limitation points are complied.

Regards,
Yudhish Padman,
Advocate, Madras High Court.
[+91 9566217446]

Sweety (Querist) 22 August 2013
will a civil suit stand in the said matter

prabhakar singh (Expert) 22 August 2013
Q.Will the aforesaid matter stand u/s 138 of NI ACT?
A.NO IS THE ANSWER AS IT WOULD NOT BE POSSIBLE TO EXPLAIN SUCH A LONG DELAY WHILE APPRENTLY NO REASON APPEARS .

Q.will a civil suit stand in the said matter?

A.Yes! A summary suit for recovery of money to gather with interest can still be filed.

R.K Nanda (Expert) 22 August 2013
file recovery suit in civil court.

Rajendra K Goyal (Expert) 22 August 2013
What was the due date of the Bill of Exchange and whether it was accepted and presented for payment on due date? Whether BOA honored.

Since the ingredients of section 138 NI Act were not met hence the cause of action is not under it.

Amount can be claimed through summary suit.