Cheque bounce
Saleem
(Querist) 03 October 2015
This query is : Resolved
i had given a loan to a friend of 7,50,000/- n also made an agreement for that loan
Agreement period expired on April 2015 n i asked him to return my amount
He told me to give me 3 months time as mentioned in the agreement
later he refused to give the money but eventually we had a compromise amone mutual freinds n told me he will return my amount in 2 installments n will give cheque for that amount
he gave me cheque for 3,75,000 dtd 17.09.2015 n 2nd cheque on 17.11.2015
Now when i deposited the cheque it is bounced
what can i do now to recover my money
i also came to know that the account no longer exists neither the firm
how cani claim me amount . pls help me
Anirudh
(Expert) 03 October 2015
You have to get in touch with a local lawyer, show the agreement paper, the bounced cheque along with the bank memo under which the cheque was returned to you.
After going through the documents in detail, the lawyer will issue a statutory notice under Section 138 of the Negotiable instruments Act, to the person who issued the cheque. This notice is required to be issued within 30 days from the date of receipt of the bank intimation by you.
Therefore, without wasting time, approach a local lawyer.
P. Venu
(Expert) 03 October 2015
Yes,you can initiate action under Section 138 of the NI Act.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 03 October 2015
You say that you have mutual friends so better find out solutions through them and get whatever is possible.
You are trying to replicate what Public banks and NBFC do but it is their business to lend money and Govt is with them that is why regular changes are being made in cheque law to suit and solve their problems.
But you are a private party and money lending is not your legal business so any well versed defense lawyer will crack your case in few questions only in cross examination.
1 What is the source of your income and how you could have such huge surplus.
2. Any previous history so that you could have trusted the accused to part with such huge amount.
3.Why you do did not give money by cheque.
4. Whether outstanding are shown in ITR.
5. If any interest is charged, if charged what is the legal authority and if not why not.
6.And when you had parted money than thereafter even a fool will not come and give you cheque which will bounce.
It shows that you had taken cheques in advance and put the dates now.
These are only few sample questions which can be asked and for which you will not have proper legal answer.
SAINATH DEVALLA
(Expert) 03 October 2015
On which date did U present the first cheque? U have to immediately issue a statutory legal notice for the first only.Consult Ur local lawyer and plan the course of action.
K.S.Srinivas
(Expert) 03 October 2015
Consult an Advocate for filing a case under Negotiable Instruments Act.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 04 October 2015
It looks good in theory to file case but complainant will have to be ready with all possible answers during trial.
In one case of Punjab cheque bounced in 1994, lower court dismissed the case, P & H HIGH COURT converted it into conviction. And finally SC in 2008 restored the trial court verdict and released the accused on only one single point that no accounts were maintained and so no returns filed.
In 2015 MP, Delhi, Madras and Karnatake HC have dismissed the complaints on such money lending by private parties on the only basis that the complainant had no capacity to give loans for the amounts claimed.
There are many other recent not earlier judgments particularly of Bombay HC about not filing ITR , cash loans, handloands etc and cases dismissed.
SAINATH DEVALLA
(Expert) 04 October 2015
Every minute aspect depends on the defence of the accused,or else the judgement is pro complainant in NI Act cases.Once a cheque is issued knowingly or unknowingly,U have to honour it.Otherwise U R in trouble.
The cases mentioned by Adv Defence are informative.
Dr J C Vashista
(Expert) 04 October 2015
I agree with experts contact, consult and engage a local lawyer and initiate proceeding against the borrower under section 138 of NI Act.
Simultaneously you can avail civil remedy for recovery of amount.
I partially agree with Advocate Defence for consideration and have ammunition for defence of accused.
