Cheque bounce under ni act

Invested my Money with an Organization few years back to trade in Commodities. All money transffered was online. For first few years all was good. Since last three years no returns are there, since organization CEO has made losses in other business. He issued cheque around six months back which is now due. However he states not to deposit these cheques, since he cannot honour them.

Need to have appropriate legal understanding if going legal will benefit or we have to wait for payer agreement to deposit cheque.

If file a case under NI ACT, what are positive chances of getting money back and what would be duration.

What will be consequences for CEO, will he be paying back and what can force him to pay.

What would be my legal expenses in going through the process and getting my money back.

Will the person be really forced by this act, as far as we have heard, he already went to Jail on complaint from other investors and got bail. So will going legal really help and we get money back.

Any alternate option.


Bikash Pachisia


retired banker

Better present the cheques, keep the cheque return memo in tact and issue a legal notice.  After expiry of 30 days file case under Section 138 of NI Act.  Though he obtained bail in other cases, again he will be taken into task.  If he has resources, there is every possibility that he will return your money after receiving legal notice.  Otherwise, bring him across the negotiating table and settle the matter by comprimise foregoing some part of the amount due from him.  

Case under Sec.138 of NI Act is a tool.  Nobody can asure you whether you can realize the money or not.  First of all, he should have sufficient assets to meet the liability.  As regards expenses, that all depends upon the advocate.  But do not engage big ticket lawyers.  The case is simple any junior who has knowledge about Sec.138 of NI Act can do the needful for you.  First present the cheques and issue notice upon bouncing.  You can decide afterwards, what exact step you wish to take. 



Looking at the circumstances, it appears that the person  does  not have capacity to pay due to alleged losses. therefore delaying the payment by way of another settlement or exchanging cheques with new ones will not get your money back. So let the cheques be bounced, file a complaint and if the accused undertakes to pay in installments agree on it in court. 

Person is arrested in the case of cheque bounce on when he does not appear in the court and a warrant is issued. Otherwise the offence is bailable. He therefore got the bail after appearing the in the court and giving undertaking /surety to appear in future.  


Thanks Mr. Jaggarao, by any chance if you can refer any qualified Lawyer in Bangalore who can help me with this at minimal cost.


Thanks Mr. Thukral

retired banker

You can browse through the "Lawyers search" portal on this web page to find out an advocate from Bangalore.




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