lent 10 lakh rupees to a friend of mine through cheque, he was paying me interest since last four years but after a few months he has stopped paying me interest, I have also shown the interest in my income tax return. Now, when I asked a lot, he gave me a cheque for the original amount and it also bounced.
Can I go for 138 N I Act
If a cheque bounces, the following actions can be taken: 1. _Contact the issuer_: Reach out to the person or business that issued the cheque to understand the reason for the bounce. 2. _Send a notice_: Send a formal notice to the issuer, demanding payment within a specified timeframe (usually 15-30 days). 3. _File a complaint_: If the issuer fails to respond or make payment, file a complaint with the local police station under Section 138 of the Negotiable Instruments Act, 1881. 4. _Civil suit_: File a civil suit for recovery of the amount, along with interest and costs. 5. _Report to credit bureaus_: Report the bounced cheque to credit bureaus to impact the issuer's credit score. 6. _Follow up_: Continuously follow up with the issuer and legal authorities to ensure resolution. Documents needed: - Bounced cheque memo - Original cheque - Notice sent to the issuer - Proof of sending the notice (acknowledgement or postal receipt) - Police complaint (if filed) - Civil suit documents (if filed) Remember to: - Act promptly - Keep records of communication and documents - Seek legal advice for guidance - Be prepared for legal proceedings Note: The process may vary depending on the jurisdiction and local laws. Consult a legal expert for specific guidance.
