One of our customers has purchased material against 30 days PDC. After 30 days, when we have deposited the cheque, it bounced with a note that party had stopped the cheque. When asked to party, they said, facing fund problem, will shortly RTGS your payment. Now, around 60days have passed, they are not remitting our payment. When and what kind of legal action can be taken? PS : Cheque amount is around Rs. 1Lac only.
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See since limitation period for notice is over you need to put cheque in bank once again get it dishonored and then you have to give a notice under 138 N I act.
Further on notice if he fails to pay you need to.file a complaint before magistrate court for cheque bounce.
Re deposit the cheque
2)in case of dishonour of cheque issue legal notice to customer to make payment within 15 days of receipt of notice
3) if he fails to make payment file complaint under section 138 of NI act for dishonour of cheque
- Legally you have two ways to recover your amount from the said customer.
- Since, already , 60 days passed from the date of bouncing , then you will have to re-present the cheque before bank for encashment.
- If, the cheque has been bounced , then within 30 days of time of bouncing , you should send him a demand notice /legal notice to the said customer.
- Further , if within 15 days of time , from the receipt of the said legal notice , he not paid you , then , you should file a case under section 138 of N.I.Act read with section 420 IPC.
- If, the said customer avoided to appear before the court,then the court will issue arrest warrant against him .
- In the mean while , he can settle the matter in dispute , after paying whole amount to you.
- Out of this, you can also file a suit for recovery as well , specially , when the cheque date already expires.
Good luck and dont forget to rating Positively.
You can file case under section 138 of negotiable instruments Act for cheque bouncing. It's a criminal offence
For cheque bounce you can make complaint against him under section 138 of Negotiable Instrument Act.
1. Cheque Bounce case has to be filed within 45 days of cheque bounce memo date. Now the cheque has become stale. However IF the cheque is still within the 90 days validity period from date written on cheque, THEN deposit again and if it bounces again, THEN immediately send lawyers notice demanding payment and subsequently file cheque bouncing case in local magistrates court.
2. Other humble alternative is to request payment to the party and TRY to obtain payment. This is more so since cheque bouncing cases in Mumbai takes more than 2-5 years to settle. Further going to police is not going to get your payment. Hence only soft option is to persuade and request the opposite party for payment.
3. INFORM all your circle parties to not to deal with this cheque bounce party, in the best interest of their businesses. This party may come down for settlement.
If the cheque date is within three months as on date then you may present the cheque once again to the bank and get it bounced once again.
After that you may initiate cheque bounce action immediately by first issuing a legal demand notice within 15 days.
After that wait for 15 days from the date of receipt of this notice by the accused, if there is no reply or if he fails to comply with the demand made then you may file the cheque bounce case under section 138 NI act within one month from that date.
This is my response to you:
1. You should have sent a legal notice;
2. You will then have to approach the MM court and condone the delay;
3. You will have to act quick;
4. Otherwise you will have to approach the civil court for remedy;
5. Consult a local lawyer, discuss full facts and take steps.
Again bounce the cheque and issue legal notice. If payment not paid within 15 days, file FIR or complaint u/s 138 of N I Act.
Act before cheque expire.
you can file case under section 138 of Negotiable Instruments Act.
For filing the case you need to send him notice for payment within one month giving him 15 days time. if expiry of 15 days from the date of your notice, he does not make the payment, then file within next 30 days.Also you can file a case of cheating as well as criminal breach of trust.
Firstly a legal notice has to be sent within the stipulated time period. In your case there has been a delay. Filing of the case i.e Summary Suit u/s 138 of N.I Act will have to be done along with a delay condonation application showing genuine excuse for delay in taking legal action.
You should present the cheque again if the cheque have not become stale.
Then send legal notice to customer and file complaint case of Section 138 NI act.
If the cheque have become stale then you can just send legal notice for recovery of funds. And file recovery suit against him.
You have missed the bus. The dishonour of cheque is an offence punishable with an imprisonment of up to 2 years under Section 138 of Negotiable Instruments Act, but to be able to file the criminal complaint under Section 138 of NI Act the payee has to mandatorily send a demand notice to the drawer within 30 days from the date on which cheque returning memo is delivered by the bank. If this is not done then cheque bounce complaint is not maintainable.
Dear sir,
Yes, you can file cheque bounce case u/s 138 NI Act, 1881
The dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both
The limitation act will now come into force. You should have approached a lawyer within 15 days and the issue would have been solved.
But now you have to file a summary suit.
Regards
