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cheque bounce for goods purchases

(Querist) 05 January 2010 This query is : Resolved 
I am an entreprenuer running a furniture store. One of our clients bought some furniture from us and paid us an advance by way of cheque for initial booking of goods.
We made a part delivery of sofas to him against another cheque which was issued by him on his firms name. My goods were delivered to him and subsequently the cheque bounced. Since then the customer is promising to pay the balance but has not paid as yet. In the hope that he will complete the transaction I have not sent him a legal notice. How long can I keep the cheque before I send him a legal notice, as I want it to be the last resort?

A V Vishal (Expert) 05 January 2010
The payee or the holder in due course of the cheque has to give a notice in writing making a demand for payment of the said amount of money to the drawer of the cheque. Such notice must be given within 30 days of information from the bank regarding the return of cheque as unpaid.
In case, you present it for second time, you need to send notice in case the cheque is dishonoured for insufficient funds.
Limitation for filing summary suit is three years from the date of cause of action which will be the date of dishonour of cheque.
anitas (Querist) 05 January 2010
what has to be done within 1 month and what shud be done within 3 years?
A V Vishal (Expert) 05 January 2010
Notice within 1 month (30 days) & limitation for filing summary suit is three years.
Raj Kumar Makkad (Expert) 05 January 2010
I do agree with vishal.
Kumar Thadhani (Expert) 06 January 2010
Serving of notice on your client should be made within three month from that date the cheque was dishonoured by your bank or the summary suit should be filed within three years from the date of cause of action.
Kumar Thadhani (Expert) 06 January 2010
Serving of notice should be made within thirty days .
Arvind Singh Chauhan (Expert) 06 January 2010
I go with Raj and Vishal Sir.
Sachin Bhatia (Expert) 06 January 2010
agree with Mr.Vishal.

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