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.