Mayank Wadhwani 17 December 2023

Post dated cheque

We did financial help to a person. When asked for money back, the person has given post dated cheques of Jan 2024 and given us a letter in writing that they are giving post dated cheques till they pay back. The person has only returned 40% of the amount till now through bank account. What can we do for the remaining amount? Are these cheques allowed under 138 section or will it be considered as security deposit if bounced? What can we do to recover?

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Dr. J C Vashista (Advocate ) 17 December 2023

After its date present them (PDCs) in your bank for realisation, if the amount is still outstanding against drawer of the subject post dated cheques.

When the cheque(s) get dishonoured by your bank issue demand notice to the drawer for initiation of proceeding under section 138 of the Negotiable Instruments Act, 1881.

Simultanously you can file a suit (civil) for recovery of the amount.

It is better to consult and engage a local prudent lawyer for proper analyses of the facts / documents, professional advise and necessary proceeding against the borrower.

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T. Kalaiselvan, Advocate (Advocate) 17 December 2023

Since you have already accepted the post dated cheque for the balance loan amount, you may wait until then and then you can file the cheque bounce case if the cheque is bounced.

It is very much legally valid to file the cheque bounce case after that.

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Mayank Wadhwani 19 December 2023

Thank you sir for the response! I am daily talking to that person on call. He is daily promising to pay the amount but not giving anything. Now he is thretening to use call recordings if we file case as we are talking daily and also having hot talks because of not receiving money. How will this be proceeded in the court if this case goes legal..We still have pending amount in lakhs to be recovered.