Negotiable instrument act cases u/s 138

Rahul Jain (Querist) 16 January 2013 This query is : Resolved
if i have given a loan to one of my wholesaler by cheque of rs. 500000 and cash of rs. 10 lac for hhis business purpose and chrged interest @ 6% which is adjusted against the purchase made and balance by paying cash....and the cheque has been bounced for principal amount...how can i get the money in that case...please suggest me....

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Devajyoti Barman (Expert) 16 January 2013
For cheque amount you can file cases u/s 138 of NI Act.
For recovering other amounts you have to file summary suit for recovery of money

ajay sethi (Expert) 16 January 2013
file complaint under section 138 NI for cheque bouncing .

as fr as civil case is concerned if you have advanced money in cash how are you going to prove it .any agreement for payment of interest . for summary suit you need docuemntary evidence to prove your transaction

C. P. CHUGH (Expert) 16 January 2013
Form the Querry what i understand is that he has advanced loan to his whole seller of Rs. 15.00 Lacs, Rs. 5.00 Lac thorugh cheque and Rs. 10.00 Lac by cash. He has not got any advance cheque from his whole seller, which has bounced, and aginst which he can file complaint u/s 138 of NI Act, as suggested by Xperts.
In my opinion, it is a simple case of recovery for which suit may be filed subject to payment of duty, as prescribed under the Law.