138 notice

vinayak (Querist) 05 August 2013 This query is : Resolved
We need to send Legal Notice u/s.138.

Say Client had balance of Rs. 10000/- as on 01-07-2013. Client issued a cheque and got bounced on 10-07-2013. Meanwhile client made a payment of Rs. 5000 whcih got honoured. Client as on date balance is Rs. 5000/- only.

Now we want to issue notice u/s. 138.
What should be the amount to be recall? will it be 5000/- or 10000/- ?

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Deepak Nair (Expert) 05 August 2013
The notice under sec.138 shall be to demand the exact amount as mentioned in the dishonored cheque.

You can ask the client to give another cheque for the remaining amount.

vinayak (Querist) 05 August 2013
Is it legal and allowable to demand excess as than what is due? Will notice be consider as valid? Any judgement ? Please guide.

Rajendra K Goyal (Expert) 05 August 2013
Notice can be given for the dishonored cheque amount.

Deepak Nair (Expert) 06 August 2013
Notice shall be for the actual liability. if the actual liability is less than the cheque amount, the accused can contest and win the case on that ground alone.

The other option is to file a civil suit for recovery.