Chaitanya Gollapudi 08 December 2021

MSME ENTERPRISE - AMOUNT RECEIVABLE FROM SUPPLIER

Dear All

We are MSME ENTERPRISE we have entered into Super Stockist Agreement with Supplier and we have given 6 lakhs to them and taken 1 lakh worth stock balance 5 lakhs are with them

Later supplier couldn't sell products so we requested them to pay back out amount he agreed and issued cheques and we're bounced 7 months back I didn't file a case that time

Now is there any fast way to recover my amount being an MSME ENTERPRISE and cheque bounce history

High Appreciate your response

Reply Follow

2 Replies

G.L.N. Prasad (Retired employee.) 08 December 2021

The only option available is filing a money recovery suit after serving a demand notice through an expert local lawyer. As every transaction has a limitation period legally, expedite steps for recovery.

Kawmini Liyanage 04 January 2022

Greetings!

In order to answer your query;

First, you have to issue a cheque bounce notice to the party in default. notifying the rebounce of cheque and demanding repayment.
After the expiration of 15 days period from the date of issuing the cheque bounce notice, the payee can initiate legal action against the drawer. The payee should register a complaint under Section 138 of the Negotiable Instruments Act, 1881.
A criminal suit under the Negotiable Instruments Act, 1881 can be filed under the offense of cheque, bounce addressed under Section 138. It is punishable with a fine that can extend to twice the amount of the cheque or imprisonment for a term not more than two years, or both.