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S.K.Sharma (HSE)     30 October 2013

Cheque returned due to reason exceeds arrangement

Sir,

I submitted two cheques to my Bank on the same day ,given to me by a builder for refund of my payments and I got the following messages

1.outward cheque No-1-- for Rs---lodged on---returned in clearing for the reason Exceeds arrangement.

2.Outward cheque No-2-- for Rs---lodged on---returned in clearing for the reason Funds Insufficient.

My question is here for cheque 1, which says the reason Exceeds Arrangement, as I have  to send him the written notice,Is this is enough reason to send him legall notice before filing the case or I have to present this cheque again to my bank to get it Funds Insufficient remark.

For Cheqe No-2. its clear the remark from Bank is Funds Insufficient.

My another question is as I have 2 cheques from the builder which I am not getting money , Can I give him one written notice for both the cheques mentioning details of both cheques in one notice or I have to send him legal notice to pay me within 15 days separetely for each cheque

Thanks

Sharma



Learning

 11 Replies

SHIRISH PAWAR, 7738990900 (Advocate)     30 October 2013

Send 2 diffrent legal notices and call him to pay within 15 days

S.K.Sharma (HSE)     31 October 2013

Thanks for the reply, but still needs an answer to my first question

My question is here for cheque 1, which says the reason Exceeds Arrangement, as I have to send him the written notice,Is this is enough reason to send him legal notice before filing the case or I have to present this cheque again to my bank to get it Funds Insufficient remark

Prasun Chandra Das (Banker)     31 October 2013

The reason "exceeds arrangements" is typically used by bankers to mean insufficient funds in an account, where the account has been given credit facilities (like cash credit/overdraft). You may send notice u/s 138. In fact, you may send notices u/s 138 regardless of the reason of chq return.

S.K.Sharma (HSE)     31 October 2013

Mr Prasun Chandrs Das, Thanks for the clarification, its clear now

A.V.Pattanashetti (Advocate)     01 November 2013

I HELLO SIR I AM A.V.PATTANASHETTI ADVOCATE FROM BIJAPUR 09448035651, U CAN FILE COMPLAINT BEFORE THE JMFC WITHIN WHOSE JURISDICTION U R RESIDING AFTER SENDING NOTICE AS REQUIRED UNDER SECTION 138 OF N.I ACT AND IT IS BETTER TO CONTACT LOCAL ADVOCATE. THANK U

T. Kalaiselvan, Advocate (Advocate)     01 November 2013

Please send a legal notice to the drawer of cheque stating that the cheques issued by him for collection of payment/refund through bank have been returned by the bankers mentioning the reasons thereof as stated in the return memos and demand the said payment of the cheque amount by cash and ask him to comply with your demand within 15 days from the date of receipt of your registered notice to him in this regard.  If you do not get a reply or that if he is not complying with your demand you may proceed to prosecute him through court as per the provisions of the law of the land. The reason namely 'exceeds arrangements' also attracts the offence u/s 138of NI Act. 

1 Like

S.K.Sharma (HSE)     01 November 2013

My advocate has sent him one legal notice which gives details of both the bounced cheques. Is it admissible to send one notice for two or more cheques as he dont want to make two different cases which if the need arises he has to fight on my behalf.Is it legally acceptable in the court of Law.

Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law)     02 November 2013


If both the cheques were part of the same transaction or return of payment, then one notice shall suffice as per the leading judgment. Also one single complaint case can also be filed without having to admit two individual cases for both the respective cheque bounces. For joinder of trials, plz read section 218 and 219 crpc.

1 Like

S.K.Sharma (HSE)     23 September 2014

My cheque bounce case was going in Tis Hazari court but as the cheques were issued from a Noida banks as per new court ruling these cases will be shifted to the area from where cheques were issued in my case Noida. What is the procedure involved? and now the case will strart from beginning or what?

 

Originally posted by : Augustine Chatterjee


If both the cheques were part of the same transaction or return of payment, then one notice shall suffice as per the leading judgment. Also one single complaint case can also be filed without having to admit two individual cases for both the respective cheque bounces. For joinder of trials, plz read section 218 and 219 crpc.

Raksha Joshi   22 January 2020

Hello everyone,

Thank you for your question!

"Exceeds arrangements" is a term typically used by bankers to denote that there are insufficient funds in the said account.

You can send him a notice and ask him to comply ask him to comply with your demand within 15 days from the date of receipt of your registered notice to him in this regard. If he does not comply with your demand you can proceed to prosecute him through court as per the provisions of the law of the land. 

You may also refer to the article below to understand the laws and procedure for cheque bounce
https://www.lawyersclubindia.com/articles/Law-Procedure-for-cheque-bounce-7640.asp

Hope this helps! Let me know if you have any further queries!

Best Regards,

Raksha

Eddie E. Lahti   04 October 2022

good information


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