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hiten (director)     14 November 2012

80 lakhs bounced cheque help


First of all Thanks to admin for having such a useful forum. This is my First post so hopefully I will have some Positive feedback

My company deals in agro business and recently we got a payment cheque of 80 lakhs from a company based in AP. 

First it got dishounered due to mismatch of signature. After constant chasing up and giving them 15 days notice we finally got 2 seperate cheque of 40 lakhs each. 

In the begning they start asking me to postponing the cheque submission and once I had enough i banked the cheque in this month and both got dishounred due to `insufficient funds` so they ask me to hold it once again as they promissed me an RTGS on 12/11/2012 but after waiting whole day i banked one cheque and it got bounced again. 

Now I have got few questions. 

1. Do I need to give him 15 days notice period again or I can file the case straightaway. 

2. As that company dont have any branch in New Delhi they are AP based do i need to file case in AP or Delhi( My company is delhi based)?

3. How long this proceding can take to recover the money.( Normally)

4. Am I entittled for any intrest as they supposed to pay from Augest. 

any other feed are welcome 


Looking forward 

Many thanks



 8 Replies

Advocate Bhartesh goyal (advocate)     14 November 2012

[1]  you have to give notice  u/s 138 [b] of N.I.Act  to drawer within 30 days from dishonour of cheque .It is mandatory and .without giving aforesaid notice ,complaint is not maintainable.

[2] you can file complaint at Delhi

[3] Offence u/s 138 of N.I.Act is punishable with imprisonment up to two years and fine up to twice of cheque amount.For recovery of cheque amount and interest you have to file civil suit for recovery of money.

CHEQUE BOUNCE (Accused in cheque bounce can be convicted and money be recovered .PROSECUTE PROPERLY. chequebounce1@gmail.com)     15 November 2012

Go personally to the party and get fresh cheques with written agreements acepting liabilty and promise for payment.

Whatever the Ld legal experts say the court process will take time and money and no surity of results.

The accused of cheque bounce case has many eascape routes.

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases. lawproblems@gmail.com)     15 November 2012

Yes the accused can prolong the case with the help of proper and timely defense.

1) A case of cheque bounce of only TWO THOUSAND but it was a rent cheque and so the accused should not be treated as defaulter so it is going  on since 2007 and many courts have changed.


2) Another case of SIX LACS was for final cross and  at this stage some issues raised by defense so the case is in revision and pending without any action since last three years.

In any legal battle there are two sides and accused has right to take all possible defense which may not be related to money due cheque bounce but no of procedural mistakes.

Bhoomika (Independent)     16 November 2012

Under any circumstance do not send two notices, your case can be dismissed on those grounds (it has happened before!)

R Trivedi (advocate.dma@gmail.com)     16 November 2012

1. You had issued the earlier notice for different cheque and in lieu of that notice they issued two fresh cheques and even they got bounced.


2. So there is a fresh case for you, send a combined notice for these two cheques under S.138. Make sure that you have enough evidence for the liability and communication post dishonor of Rs. 80 Lacs cheque. 


3. File the case


4. Once you file the case and summons issued, then either he will pay off or he will contest. If he decides to contest then file the civil recovery under order XXXVII, this will work faster but you may have to pay the court fee for the case.

samudrala (Advocate)     16 November 2012

we did many cheque bounce cases for side for complainant and as well for the accused if guide on behalf of complainant i.e., on behlaf of the cheque holder first of all you have to prove whether the cheqe is issued in discharge of leglly enforceble debt and after that you should be able to show the liability for which he/ company issued the cheque and there after you should have issued the notice only once with clear demand specifying the time with 15 days in the said notice. the notice has to be send within 30 days of the date of dishounour / date of intimation by the bank.  notice must be send to correct address.  better to send by registered post and as well speed post and courier service.  you have to wait for 15 days after the date of receipt of the notice by the other party and there after you can file the case within 30 days after the said date.  in cheque bounce case, if you prove the case other side will be punished and its discrition of th court to award compensation but it is not compalsary to the court to grant compensation to the equal amount of the cheque

being you are at delhi in busy courts i think at least it will take about 2 to 3 years in trail court and after that he may appeal in sessions court and then hight court its matter of about another 2 to 3 years, for recovery of the amount by paying court fees you have to file a civil case.  if you find any of his assets you can take attachement over the said property thorugh court 

samudrala (Advocate)     16 November 2012

if you can pass on the address of the person who issued the cheqe being i am at hyderabd i can enquire his status in hyd and can inform you possitively hope it confidential 

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