Cheque bounce, section 138, partial payment,

Rakesh (Querist) 22 February 2024 This query is : Resolved
I had got a cheque for 4,00,000 as refund from a company.
The cheque bounced and a notice was sent within 15 days from lawyer to company.
The payer partially repaid 1,00,000. A letter was given promising payment of remaining 3,00,000 within 1 month.
This payment was not done and dishonoured. The 30 day time limit to file a complaint has passed.

Can I proceed to file case under sec. 138 ? It has been more than 30 days after the 15 day notice period. Can I apply for condonation of delay for filing complaint as per section 142 , which allows for condonation based on this circumstance?

I re submitted the cheque, but did not endorse it for the lower amount. The cheque bounced. I have time to send a new notice in this second case, but the pending amount is only 3 lacks, but cheque is for 4 lacks. I believe that sec. 138 would not be valid for this case.

The cheque is now expired, so I cannot submit it again. What would be the way out? Is civil recovery suit my best option?

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Quick Summary

If a cheque bounces and the payer makes a partial payment, but then fails to pay the remainder, you may still have legal recourse even if the initial deadline for a Section 138 complaint has passed. While a Section 138 case might be time-barred, a summary suit is often the quickest and most effective way to recover the outstanding amount, especially with a cheque in hand and acknowledgment of the debt. It's advisable to consult an experienced lawyer to explore this option, as there are no monetary limits for filing a summary suit.

T. Kalaiselvan, Advocate (Expert) 22 February 2024
You can file summary suit to recover the money on the basis of the cheque in your possession.
No doubt the cheque bounce case is barred by limitation, but you can avail the relief through civil law.

Rakesh (Querist) 22 February 2024
Is there a limitation for “ summary suit ” in terms of the amount to be recovered?

A lawyer I consulted mentioned that it was only Upto 2 lacks, more than this we would need to proceed with normal recovery suit. My amount would be Upto 4 lacks.

Would I be correct in noting that a summary suit for recovery would be the quickest route, provided we have a cheque , partial repayment which acknowledges the debt, written confirmation that the amount is due.

And, thank you Mr. Kalaiselvan for your quick and valuable reply.

T. Kalaiselvan, Advocate (Expert) 23 February 2024
There's no pecuniary restriction in law to file a summary suit to recover the money.
In fact summary suit is the fastest relief available to the plaintiff and very effective.
Firstly you change the lawyer and proceed with another experienced and knowledgeable lawyer to file the summary suit which is the best option before you to recover your money.

Advocate Bhartesh goyal (Expert) 23 February 2024
Yes, summary suit can be filed for infinite amount, No restrictions. Apart from filing summary suit you may initiate criminal case for cheating against him.

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