Dear Sir, CHEQUE BOUNCING CASE- A SITUATION
Please throw light on the following situation:
There are two parties 'A' a small supplier and 'B' a large group of varied businesses.
1. 'A' supplies material to 'B'.
2. Payment becomes over due, 'B' does not pay even after repeated reminders.
3. During a meeting 'B' gives to 'A', approx. 50% of the amount by cheque without date and mentions on the covering letter that the cheques should not be presented in bank without the written consent by letter or e-mail; thereafter ‘A’ requests for the money, then ‘B’ by a e-mail states that the cheques will be cleared for presenting shortly. Nine months have since passed the cheques are still in the possession of ‘A’ and ‘B’ has not given clearance to present the same..
4. For continuance of business, 'B' request 'A' to supply material for which 100% advance will be for the supplies to be made and some portion will be adjusted against old dues.
4.1 For continuance of supplies 'B' also issues cheques of 25% of the amount due to 'A' with dates mentioned on the same and also mentions that in case payment for this amount is made by RTGS, then the cheques amounting to 25% amount will be returned by 'A' to 'B', however, as the meeting concludes, the MD of 'B' verbally states that 'A' need not return the cheques as more amount is to be paid to 'A'.
4.2. 'A' starts receiving payment in parts by RTGS up to approx. 25% of the amount as was discussed but not as per the dates/days as promised.
4.3 'B' asks 'A' to return the cheques by e-mail, 'A' does not return the cheques instead informs the verbal communication of MD of 'B' for holding the cheques by 'A'.
4.4 No reply is received from 'B', thus 'A' holds on for the cheques.
5. 'B 'does not respond to 'A's many mails and on telephone, say he will pay when he is able to pay.
6. Can 'A' deposit both, dated cheques of 25% amount and also undated cheques of 50% of the amount by putting current dates on it as 'B' is not responding, so that 'A' can sue 'B' under section 138 if the cheques bounce. (It is 9 months since the undated cheques were issued by ‘B’ to ‘A’)
7. Statement of account from ‘B’ has been received on mail by ‘A’, all sales tax forms have also been received by ‘A’.
Thanks
Anil
