Dishonour of Cheque
Kapil
(Querist) 09 September 2010
This query is : Resolved
Sir,
I have sold goods against advance cheque of 20 days later than of bill date. Now on deposition of cheques, they are dishonoured due to insufficient balance. Party don't responding.
Kindly advice what should i do for collection??
What help can i get from legal machinery??
Adv Archana Deshmukh
(Expert) 09 September 2010
Send the party a legal notice by RPAD immediately stating the fact of dishonour of the cheque and also demanding the amount of the cheque.
A V Vishal
(Expert) 09 September 2010
You have to serve legal notice within 30 days from the date you have knowledge of the dishonour and thereafter initiate proceedings u/s.138 NI Act if the party fails to pay the amount with 15 days of the receipt of the notice.
s.subramanian
(Expert) 09 September 2010
Yes. I agree with Adv Archana and Mr.Vishal.
Prakash Langalia
(Expert) 09 September 2010
you can file complaint under section 138. you should also file civil suit simultaneously so that in case court consider cheque as security in 138's case and in that case you can recover your money through civil court.
nayan joshi
(Expert) 10 September 2010
yes i agree with Adv Archana and Mr. Vishal..and also agree with Mr. Prakash...
R.Ranganathan
(Expert) 10 September 2010
File case under 138 NI Act after giving legal notice within the prescribed time as suggested by the experts.
Uma parameswaran
(Expert) 11 September 2010
I am also concurred with above views.
Surrender K Singal
(Expert) 11 September 2010
Seems to have a good case under N I Act which may pressurise the defaulter to settle and pay but a summary suit under CPC may also be instituted simultaneously to recover with damages interest and costs
