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Jayanti Devi (Student)     25 December 2024

Cheque bounce

Buyer has ordered an electronic product on installments.

Accordingly buyer is supposed to pay 5 chexxques.

But his second cheque has been dishonored. Buyer has said he is out of station but will  give another cheque in 4 days.

now, question is 

a) how much time seller has to take action on the buyer? within how many days seller need to send notice ?

b) if buyer gives another cheque in 4 days, which clears subsequently, can seller still take action on buyer? 



 5 Replies

Dr. J C Vashista (Advocate )     25 December 2024

What is your concern / dispute / problem and locus standi to the hypothetical fabricated facts ?

T. Kalaiselvan, Advocate (Advocate)     25 December 2024

If the cheque is bounced then the holder can issue a legal notice demanding the cheque amount within 30 days from the date of dishonor of the cheque.

If the buyer has paid the amount within the stipulated time, then the seller cannot take any further action.

Dr. J C Vashista (Advocate )     25 December 2024

Demand notice has to be issued within 30 days from the date of dishonour of the cheque giving 15 days time to pay the cheque amount 

Advocate Bhartesh goyal (advocate)     25 December 2024

Issue legal notice to drawer and demand cheque amount within 30 days from the date of dishonour of cheque giving him 15 days to make payment of dishonoured cheque. 

If buyer makes payment of  dishonoured cheque then you can't initiate any llegal proceedings against him.

Dr. J C Vashista (Advocate )     26 December 2024

Read provisions of Section 138 and 142 of the Negotiable Instruments Act, 1881 thoroughly and come back to your tutor, in case of any doubt / unsolved query.


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