Kuldeep Gauniyal (Sr Manager - Legal) 07 January 2014

Outstanding dues

Can my friends suggest the possible way outs in the following scenario:

A is distributor of B. A owes Rs. 10 lacs to B against the products supplied by B to A, against which A has issued post dated cheque of Rs. 10 lacs to B.

A remits part payment of Rs. 5 lacs thru RTGS and intimates B not to bank the cheque of Rs. 10 lacs, which cheque is still valid. A refused to remit remaining Rs. 5 lacs.

Now, (1) Should B deposit the cheque of Rs. 10 lacs in the bank for clearance; (2) upon bouncing of the cheque of Rs. 10 lacs, can B sue A u/s 138.

Regards,

Kuldeep Gauniyal

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1 Replies

Prasun Chandra Das (Banker) 07 January 2014

Interesting !!

I think the best course is (1) for B to write to A demanding payment of remaining Rs.5 lacs within X days, & stating that if payment is not received the chq will be presented to drawee bank for payment, (2) if payment is not received within X days, the PDC can be presented for payment, (3) if the PDC bounces, notice u/s 138 can be sent, mentioning that since Rs.5 lacs has been received, the demand is for the remaining Rs.5 lacs.