N.I. Act 138

Though 'stop payment' advice to your bank after issuing a cheque attracts penal action under N.I.Act, in your case it seems so far there has been no notice sent to you which is required to be sent within 30 days from the date of dishonor of your cheque.  You may therefore immediately send a notice from your side to the company explaining the reasons for your decision not to join in the job offered by them and also cautioning them not to proceed with action u/s 138 of NI Act, as there is no legal liability on your part to allow them encash your undated cheque lying with them.  You should specify that the cheque has been given 'undated' as the same is meant to serve as 'security' only.  This action should be expeditious from your side before they decide to send a notice demanding dishonored cheque amount as required under the Act.. Best of luck.

PVRAO, Advocate Hyderabad.

THE RAO'S  SUGGETION IS OK TO COME OUT FROM 138 CLUTCHES.

Thanks Mr  P. V. RAO

I would like to update you that the undated cheque was for the bond only.

And they have already sent me a letter demanding dishonored cheque amount.

At the time of accepting offer letter i signed the government Stamp Paper also written with

if the employ quit the company before two years company will encash the cheque.

Please suggest me the appropriate solutions for this.

Thanks

Rajeev