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UKS CHAUHAN (Advocate)     05 June 2014

Cheque bounced

We as a pharmaceutical company selling medicines to one firm on credit basis. The firm was to make payment on monthly basis. After six months, the company could not clear the account, hence we decided to stop selling to it. The firm, in order to continue the existing arrangement, give three post dated cheques. Two cheques amounting to Rs. 500000/- were bounced due to insufficient of funds. Mean time, the firm obtained the pharmaceuticals approximately to the value of cheques. After getting information of bounce of his cheques, he started making payment in piecemeal manner that is 2 lacs against  3 lacs cheque and thereafter one lac in intervals of 20 days or month. Then he suddenly stopped payment of remaining dues which he took pharmaceuticals during the course of repayment of cheques. As on date, the firm owe to us around Rs 6 lacs.

Please suggest  what action is taken by us to initiate criminal proceedings as the firm has deliberately decieved us by issuing post dated cheques and getting them bounced and making slow payment of small amount against the bounced cheques and simultaneously obtaining goods on false promise.


 4 Replies

Sunil S Nair (lawyer)     06 June 2014

Can i know who drafted this notice was it you or your lawyer this draft doesnt seems drafted by you lawyer

UKS CHAUHAN (Advocate)     06 June 2014

Yes sir, you are right. it is drafted by us.

Sunil S Nair (lawyer)     06 June 2014

It will be good if you draft the notice from your local lawyer who entertains138 case your notice is good but need a legal hand to draft it will benefit you as if the person/ company/ agent fails to follow the terms stated in notice your lawyer can immediately take legal action and register the case in Honourable Court which will help you to recover the sum

G. Y. Sharma (Advocate)     08 June 2014


OK. Mr. Chauhan, your notice issued under sec. 138 (b) of The Negotiable Instruments Act, 1881 does not however go wrong. What ought to be brought into the notice has been duly complied with. Now the question is better you instruct your counsel to draft a complaint in detail incorporating all the material liabilities owed by your opponent alongwith a statement of their account annexing the credit bills soon after completion of the statutoty period of 15 days from the date of receipt of the notice.

Don't forget to mention the total amount due and the amount received after sending the notice in the complaint and the statement of account.

Also filed a civil suit for recovery of money basing on the running account the bounced cheques together with the credit bills and other material correspondence.

Wish you all the best.


                                  M. Com., LL.M.,


                                   M. Com., LL.M.,


H. No. 2-1-178/1, 100 Feet Road

Vidyaranyapuri, Hanumakonda.


*: 98 493 45 755 – *: 99 66 45 66 85

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