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Cheque issued by employer bounced 2 times

Querist : Anonymous (Querist) 27 March 2010 This query is : Resolved 
Hi,
This is my first query on this forum, hope to get a reasonable advise from all the experts. My x-employer issued me 3 cheques in lieu of 3 months arrear salary. These were issued to me when they asked me to leave the organisation. They also provided me with a job satisfaction certificate and a document stating that the cheques are being paid in lieu of the arrear salary signed by the manager. The cheques were signed by the director himself. Now 2 out of 3 were encashed but the 3rd one dated 10th OCT 2010 didn't. I deposited that same cheque only twice but both the time it was same, now I am thinking of some legal procedure, what are my options.

Please help.
Querist : Anonymous (Querist) 27 March 2010
sorry the date of the 3rd cheque is 10 OCT 2009
Sukhija (Expert) 27 March 2010
Hope u have not given any notice of dishonour to ur employer till now.what is the amount of cheque? where were u doing ur job?(place)
u can deposit it again and contact local lawyer to issue legal demand notice to ur employer u/s138 NI Act after receiving chq return memo from bank, rest advocate will advise u further how and when to file case u/s138.
Adv.Aiyer VLV (Expert) 27 March 2010
each bouncing would be separate offence and you could also get arrest warrant of debtor. please issue notice and initiate proceedings under negotiable instruments act in a court using professional brethern.

(you have 100% DISCOUNT for answers - so no reasonable answer is possible)
welcome to querying
B K Raghavendra Rao (Expert) 27 March 2010
Professor's advise need to be amended. You may present the cheque any number of times before the validity of the cheque expires. The life of cheque expires on 09.04.2010. If you are sure the cheque would be encashed before that, you may take a chance of re-presenting the cheque.

Otherwise, you have an option of issuing a legal notice to your employer for bouncing of cheque under Section 138 of Negotiable Instruments Act within one month from the date of receipt of cheque return memo issued by the bank. In the legal notice, fifteen days notice would be allowed for the cheque drawer to pay the cheque amount. If, the cheque drawer does not pay the cheque amount to you within fifteen days from the date of receipt of that notice, only then it is an offence and you may file complaint in the Magistrate's Court and proceed legally.
mahendrakumar (Expert) 28 March 2010
apart from the legal procedures you are thinking, have you contacted the HR dept of your previous employer and informed the matter.

since,out of 3 cheques issued by them,you were able to encash 2 cheques,this may not be intentional from your previous employer.

It is better to go for legal remedies after exhaustion of other options.
Adv.Aiyer VLV (Expert) 28 March 2010
yes. i agree with mahendrakumar and mr.BK Rao ir also right.
Santosh Kumar.K (Expert) 28 March 2010
when was the cheque dishonoured lastly
Parveen Kr. Aggarwal (Expert) 28 March 2010
What has been stated in the return memo about the reason of dishonour of the cheque?
Querist : Anonymous (Querist) 29 March 2010
Thank you all for forwarding such expert support.

In addition to the previous detail:

1. The cheque amount is Rs.50000.00
2. My work place in New Delhi.
3. No legal notice have been issued yet.
4. The return memo says "insufficient fund"
5. Yes had a lot of talk with the concern person but now he is not coming on the phone and told me to contact the issuing authority directly.
6. Will the cheque become lapsed on bouncing the third time before 9th Apr 2010?
Parveen Kr. Aggarwal (Expert) 30 March 2010
Yes. The cheque will lapse after expiry of six months's period of the date it bears.

You may present a cheque any number of times during its validity period.

You have to serve notice wihtin 30 days of the receipt of intimation of dishonour from your bank.

Hopefully once notice is served, your payment will be made by your employer.


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