anil kumar garg (Director) 11 October 2013

Recovery of dues

Dear sir

We had supplied material to a private limited co and obtained PDC from the co . The cheques are signed by authorized signatory who is not a director . However the authorized signatory is the main person looking after the business and takes all decision but in co books he is not a director.

Now

1. Some cheques have expired i.e. more than three months old and co is not giving fresh cheques against these cheques.

2. Some cheques are returned with remarks account closed .

Pl advise what action can be taken for recovery . Whether criminal and civil both action can be taken .

We also require a lawyer who can deal with this situation effectively.

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3 Replies

H. S. Thukral (Lawyer) 11 October 2013

For bounced cheques with existing validity you can resort to criminal as well as civil proceeding under summary procedure. For cheque beyond validity you have civil remedy for recovery including under summary procedure of O xxxvii of CPC

Advocate Bhartesh goyal (advocate) 11 October 2013

Agree with Mr H.S Thukral

Harshal Damania (Legal Executive) 12 October 2013

In case of cheques with non-existing validity, you can proceed with summary suit for recovery of payment under Order 37 of Civil Procedure Code.

In case of cheques with existing validity, you can go for criminal proceeding u/s 138 of Negotiable Instruments Act after sending legal notice to party for payment, as prescribed by law.