Cheque bounce
rajashekhar
(Querist) 21 January 2021
This query is : Resolved
sir a person has given an amount to his friend of Rs.3,50,000/- by account transfer to his bank and cash of 1,14,000/- total Rs 4,64,000/- now my client demanded return of said amount given as loan with 7% interest but a settlement has arrived for Rs.4,44,000/- with a reduction of Rs.20,000 from original borrowed amount and borrower friend has issued 2 cheques for Rs.3,20,000/- and Rs.1,24,000/- same got bounced a legal notice was issued narrating whole story with all details till dishonour but last para of legal notice a demand for whole loan amount of Rs.4,64,000/-was demanded with 7% interest till realisation.notice was issued by person who has given the loan with out going for legal advice. the case records were now taken to advocate now by person who has lent loan
is this legal notice of demand of Rs.4,64,000/- with interest of 7% per year is defective ? how to file 138 case if notice is treated as defective notice because loan amount demanded though all bounced cheque details are furnished what are case laws support the complaint to over come defective notice ?
Advocate Bhartesh goyal
(Expert) 21 January 2021
Yes, for initiating the proceedings u/s 138 of N.I.Act ,you can not demand more than cheque amount but if you are going to initiate civil suit for recovery of due and out standing amount than your notice is perfectly rIght and legal
Advocate Bhartesh goyal
(Expert) 21 January 2021
You can again present cheque for encashment if it's validity period is not expired and issue notice for demand of cheque amount.
K Rajasekharan
(Expert) 22 January 2021
What you must demand is actual "cheque amount" for each item in the notice but not the total "loan amount".
In cheque cases, even if you can combine more than one cheques in one notice if the parties are the same, you have to file separate cases for each dishonour, unless Section 219 CrPC allows the consolidation of cases in the particular situation applicable to you in your case.
T. Kalaiselvan, Advocate
(Expert) 05 June 2021
In the legal demand notice yo can mention the entire history/episode of the transactions between the lender and the borrower.
If he lender prefers to file a cheque bounce case under section 138 NI Act, then he can claim only the cheque amount with fine thereon or double the cheque amount.
He can subsequently file a money recovery suit before a civil court on the basis of the legal demand notice to recover the entire amount as mentioned in the legal notice along with the interest amount
