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Syed (SSE)     07 February 2012

Cheque bounce

Hi,

Landlord has given me a cheque for security deposit but the it has bounced twice, My lawyer send him the notice by registered post within 15 days of 2nd bounce date but it was not recieved by landlord.

 

Kindly let me know what should i do as the tnext step.

 

Thanks



Learning

 9 Replies

M.Sheik Mohammed Ali (advocate)     07 February 2012

file NI case against him. but notice single time sent only valid.

1 Like

Syed (SSE)     07 February 2012

Thanks for your advise Mr. Sheik, I would appreciate if you could answer one more query.Latest update is that my landlord has agreed to pay money back in a weeks time. Can i deposit that cheque again ?

Kwatra Corporate Advisors (Advocates)     07 February 2012

Mr.Syed the best part would be to consult your advocate on this

1 Like

Syed (SSE)     07 February 2012

And in case it bounce 3rd time , do i have to repeat the whole process of sending notice again ?

R Trivedi (advocate.dma@gmail.com)     07 February 2012

The cheque can be deposited/bounced any number of times during its validity, but notice cannot be issued for more than once. If cheque is bounced and you do not think that drawer will pay you the money, then within 30 Days of receipt of bounce slip from bank, send a notice to him. 

1 Like

k.chandrasekharan (advocate)     08 February 2012

You have stated that as on date the cheque in question has been presented twice and bounced. A notice has been issued. It is not stated whether the notice is for the first bounce or the second.

The time of 15 days to pay the amount represented by the cheque commences from the next day of receipt of notice. If not paid, the offence u/s138 is complete. Limitation for filing complaint, starts from the 16th day and lasts for a month.

If two notices have been issued, then limitation is from the first notice. Second notice does not extend limitation.

Non-receipt of the notice sent by post does not affect the complainant, if the same has been properly addressed to the address of the recipient last known to the complainant.

Assurances of payment within short time is always made by the drawers of cheques to the payees. If the complaint is not filed within limitation, based on such assurances and general aversion of people to avoid litigation, then precious time would be lost for ever. Remedy would lie, then to file a civil suit only, better under 37 of the code of civil procedure. But this would entail court fee, higher legal fees and time lag as civil courts are over-burdened with cases.

You can present the cheque any number of times within the validity period of six months from the date of the cheque (to be revised to 3 months, shortly) but since notice is already issued under sectiuon 138, limitation has already started running. So delay would only disable you from filing complaint.

Better to file complaint in time. If money is paid, then you can withdraw the complaint and end the matter.

Syed (SSE)     08 February 2012

Hi Mr.Chandrasekharan,

Notice was served for second bounce and on 11th feb 15 days time given for  making the payment will be completed. In the men time i have spoken to landlord and seems he has agreed to make the payment on 11th. Now if i present the cheque again after 11th and it is cleared then there will be no issue but if it gets bounced again will the limitation of 15 days presented by notice hold good and i can file a complaint or in anyway presenting the cheque can weaken my case. Kindly let me know.

 

Thanks to you all for taking interest in my case and providing your valuable guidance.

 

Thanks

k.chandrasekharan (advocate)     08 February 2012

You have got time to file complaint upto 10th March. If you get payment by any other means or by representation of cheque, you can drop the matter as settled. If payment is not received by any means and if you do not file the complaint within limitation, you lose the chance of proceeding u/s 138 NI Act. For bouncing again, NO NOTICE SHOULD BE SERVED. No written communication of any sort is to be sent again.You have to proceed on the basis of notioce served already only.


(Guest)

It would be better to collect the amount in cash.....
if your landlord agreed don't submit it third of forth time as it wil make no sense if the intention of the person is only to strech time also you are losing money by paying cheaque bounce charges.... better to ask cash if not then a Demand Draft.....

make sure you must file the case withiin the time period if the you don't get the amount.

Rest is on you...


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