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Mahesh (Management)     01 June 2013

Cheque boun

Hi,

I am into business and was dealing with ABC Airlines Ltd. This is a group of companies like ABC Power Limited & ABC Shipping. Mr. Varma is the Director of all the companies. They issued one cheque against my services dated 21 Jan, 2013 from ABC Shipping company account. After that they requested that not to deposit the cheque as there is some financial crunch. I cooperated with them but they were not confirming any date to submitt the same. Finally on 19th April, 2013 I submitted the cheque otherwise I could have lost the 3 months timelines of submission the cheque. Cheque Got bounced on 22nd April, 2013.

Bank sent the bounced cheque with Memo via courier but it was undelivered at my office address (beco's of some reason). I recv'd one SMS on 29th April, 2013 that "Returned Cheque, got undelivered from your mailing address and is sent to base branch on 29th April, 2013. Pls collect it from there after 3 working days."

I collected the bounced cheque from the base branch on 3rd May, 2013 and reason was stated on the Memo is "Stop Payment". I had sent the Demand Notice to Mr. Varma and ABC Shipping as cheque was issued from this company account but this notice returned with comment that "address not found". 

My Queries are :

1. Demand Notice 15 days period starts from the cheque bounce date (22nd April, 2013) or from the date on which I have recv'd back the bounced cheque with Memo (3rd May, 2013).

2. Demand Notice should reach to the defaulter company within 15 days or Can I send the Demand Notice on 15th day also via registered Letter.

2. I had sent the notice to ABC Shipping as cheque was issued from this company account but I was providing services to ABC Airlines Ltd. Is that a mistake ?

Kindly suggest... Your prompt response will be highly appreciated.

Regard's

Mahesh



Learning

 3 Replies

Adv k . mahesh (advocate)     01 June 2013

1. Demand Notice 15 days period starts from the cheque bounce date (22nd April, 2013) or from the date on which I have recv'd back the bounced cheque with Memo (3rd May, 2013).

22 april 2013 is the date you have to count for the cheque bounce and notice to sent

 

2. Demand Notice should reach to the defaulter company within 15 days or Can I send the Demand Notice on 15th day also via registered Letter.

before 15 days means you have to give him some time to pay the amount or for some compromise

 

2. I had sent the notice to ABC Shipping as cheque was issued from this company account but I was providing services to ABC Airlines Ltd. Is that a mistake ?

to m/s ABC Airlines as defaulter with name and mention the details of the cheque 

Sonia Dhamija (Advocate)     02 June 2013

The point-wise reply to your queries is as under:

 

(1) Demand notice period is not 15 days, but it is 30 days. Moreover, this period starts from the date of receipt of information by you from the bank regarding the return of the cheque as unpaid. I think it should be considered to start on 29th April 2013 when you first got the SMS from bank giving you “information” that the cheque has been returned unpaid. So, you were required to send the demand notice within a period of 30 days w.e.f. 29th April 2013.

 

(2) You can send the demand notice within 30 days from getting information from the bank about unpaid cheque. It is not necessary that the demand notice should reach the defaulter company within that period itself.

 

 

(3) The law requires you to send demand notice to the “drawer” of the cheque which is returned unpaid. In this case, it is ABC Shipping who drew the cheque.

Now, I don’t know how you initially accepted the cheque from this company when you had actually given the services to ABC Airlines Ltd. Was there any letter enclosed with the cheque mentioning that they were paying the cheque on behalf of ABC Airlines Ltd. ? Or, is ABC Shipping a division of ABC Airlines Ltd. ?

NPKailaasam (ADVOCATE & Management Consultant)     24 June 2013

1)  Demand notice period is 30 days from the bounce of the cheque and the notice can been sent within 30 days period and there is no neccesity that the notice should reach the defaulter within 15 days time

2) The cause of action aroses only when the defaulter receives the notice or unclaimed after intimation by the post man is given or refused to receive notice whatever it may be.

3) You can file the case if the defaulter not pays the cheque amount within 30 days time of Cause of action arosen date.


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