Dishonour of bank cheque

vibhash sharma (Querist) 01 June 2009 This query is : Resolved
Hi!
I got one post dated cheque of dated 30-05-09 of certain amount, against full and final settlement of my amount owes to certain person, for that both us signed an mutual agreement of payment mentioning date and cheque no. in the agreement.
To my shock when the date came the person issued the cheque asking for one month more time which I am not able to give him.
So please suggest me what should I do in such situation, shall I present the cheque in the bank ? what are the safeguards or action I can take against that person if the cheque is bounced on presentation.

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A V Vishal (Expert) 02 June 2009
Dear Vibhash,

It seems you have a executed pro note of the debtor with you. Generally the limitation of a pronote is 3 years with a grace period of 3 days. There are 2 options, first have a letter stating that the person requires 1 more month to clear the debt and also take a token amount from him this keeps the debt alive and extends the limitation of the existing pro note by another 3 years. Also take a fresh cheque in lieu of the one given to you by him, mention the fact in the letter stating that the fresh cheque is issued in lieu of the old cheque. The second option would be execute another fresh pronote for repayment within one month altogether with a fresh cheque.