Business transaction
THANGADURAI
(Querist) 20 June 2011
This query is : Resolved
Sir, I am doing retail sale of house hold items. One of my friend introduced a person who is going to purchase a bulk order. One day my friend came with him and placed for a bulk order and issued 9 cheques with amounts filled by no dates. My friend said after a function in the purchaser's house after week and there afte I can take the cheques one by one. He asked me to get payment for a cheque initially after two days. The function was over and I asked for payment, He asked me to put a cheque for collection through my bank. The cheque was rejected of technical reasons that figure and words differ. He delayed for three days and passed another cheque which I collected directly from bank's branch nearby. after some time on my insistence he asked me to put another cheque for collection which was also rejected by his bank with the reason 'effects not cleared'. He then told me to go to the bank next day to collect amount and I also did with another cheque as I did not get back the rejected cheq. from my bank. Now more than a month is gone and he has not given his word to get payment from the bank. He is avoiding me to talk. I have not made a VAT bill for him so far. What is my right and position? Please explain in detail. Thank you very much in anticipation.
Shashikant V. Patil
(Expert) 20 June 2011
Dear Thangadurai,
You quickly meet Lawyer, he will do the needful, he will issue a legal notice to him and file a case u/s 138 of N.I Act.
M V Gupta
(Expert) 21 June 2011
For filing a case under Sec. 138 of the NI Act, you should have proof with u that the cheques were issued to discharge a debt due to u. You have stated that u have not even raised a bill against the drawer of the Cheques. So first see what kind of other proof u can produce to prove that the above.Then u can certainly file a case under Sec.138 of the NI Act as suggested above.
