Navendu (Manager) 18 July 2013

Cheque bounce

Hi,

I had lent a sum of Rs. 5 lacs interest free around two years back. The person agreed to return the money in 16 installments of Rs. 30,000 starting from November 2012 and given us post dated cheques. The person should have paid nine instalments to me by July 2013, however has paid only four instalments till now. Now he is not answering our calls for payments. The accumulated cheques amount to Rs. 1.5 lacs, which if i submit will bounce. What should be my future course of action? Request Help on this matter.

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3 Replies

2BHelpfull (Other) 18 July 2013

SEC.138 of NI Act .
A legal Notice is issued to Defaulter whose Chq is dishonoured .IT SHOULD BE ISSUED WITHIN 15 DAYS OF DISHONOUR OF CHEQUE BY REGISTERED POST A.D.

in case the said payment is not made within 15 day from the date of receipt of the notice then the complainent has to file criminal case within 30 days .

Navendu (Manager) 03 August 2013

The person has closed the account for which the cheques were issued. How should I proceed to prosecute the person. Within how many days notice is to be sent u/s 138. We received the intimation of dishonour from bank on 27-7-2013. can we also apply section 420 against the said person.

MARU ADVOCATE (simple solutions for criminal legal problems -- yourpunch@gmail.com) 03 August 2013

Now there are very recent APEX COURT judgements that a cheque also presumes lialility.

However you have to prove source of funds and what were compelling reasons to advance money on security of just a cheque.

Unless you can do it the other side may seek IT returns and many such other related laws like illegal money lending which have very harsh provisions and huge powers in the hands of most junior officers.