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Ashwin S (CEO)     18 August 2012

Action against cheque bounce and dishonoring the po

Our company has been selling products across India. One of our customers in Bhubaneshwar, Orissa bought our systems at a cost of Rs 2.4 Lakhs and sent us a Post dated cheque. Out of good faith (they had been our customers earlier as well), we dispatched them our products.

But we later realized that the cheque had bounced.

After trying to contact them through multiple mediums for about 1 month (it caused us to shell out a lot of money just to get in touch with them), they informed that their company has dissolved due to financial troubles and asked us to cooperate and send them a new Tax Invoice in the name of their new company. We decided to help them in troubled times and did as they said. They gave us another cheque and asked us to deposit it after a week.

After a week, the second cheque also bounced. And now, no one in their company is receiving calls. Visits are also futile. We got in touch with one of their employees, and he said that they are awaiting payment from some client of theirs and do not have any bank balance at the moment.

We have threatened legal action as well, but there has been no response. Its a significant amount and i am not sure of the next action which we should take.

Rs 2.4 Lakhs has been lost, add to that the value of interest and the value of the costs incurred in contacting them (all of which we are not even asking from them). Its a serious issue and we need guidance here.

Please help.


 3 Replies


File 138 if the time limit permits or simply file a civil suit for recoveru of money.

Yogesh Anand (Head- Legal AVP)     21 August 2012

Since the co. has played fraud with you by issuing another cheque on false pretext of dissolution of previous co. you can file FIR for cheating and fraud and include all directors and concerned officers of the previous and new co. as conspirators.   Simultaneously file recovry suit under Order 37 (summary suit) against previous co. as the time for filing complaint under sec. 138 of N I Act has expired.

Yeshwant (Software Engineer)     03 March 2014

we can get garnishee order from court.

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