Dishonour of Cheque – Cheque Bouncing – Sample Questions

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Q1. What can I do when a cheque is dishonoured for the reason of insufficient funds. What legal action I can take to get the amount cleared?

A. On the dishonour of a cheque, one can file a suit for recovery of the cheque amount along with the cost & interest under order XXXVII of Code of Civil Procedure 1908 ( which is a summary procedure and) can also file a Criminal Complaint u/s 138 of Negotiable Instrument Act for punishment to the signatory of the cheque for haring committed an offence. However, before filing the said complaint a statutory notice is liable to be given to the other party.

Q2. I have got my cheque dishonoured few months back. It was issued by a Company. What can I do now?

A. On the dishonour of cheque by the company you can file a suit for recovery of the amount under Order XXXVII of CPC. As you have stated that cheques were dishonoured few months back and you have issued no notice to the company bringing to their knowledge the dishonour of cheques and the life of the cheque is still valid which is usually six months from the date of issue. You please present the cheque again and on receipt of the information about the dishonour of the cheque you immediately issue notice within 30 days from the receipt of the information of dishonour of cheque to the company. If the company does not pay the amount within 30 days from the receipt of the notice, you can file complaint under Section 138 of the Negotiable Instrument Act. The said complaint is to be filed within one month on the expiry of 30 days period of notice.

Q3. Our is the software distribution co. During course of our business we had supplied software worth Rs.3 lacs. But our client dishonoured the cheque. We have filed court case on him after that he paid us Rs. 1 lac and then he has run away. We do not have any idea about his where about. Court has issued proclaimed offender notice, but we do not now how to trace him. He has closed his account and bankers are not cooperating with information like his other address. Pleas advice?

A. Let the proceedings of declaration of proclaimed Offender be completed. The accused will be declared Proclaimed Offender and can be arrested at any time. At this stage, you can not do anything else. However, simultaneously you can file Suit for Recovery with the last known address of the accused.

Q4. I have a cheque dishonoured. I have informed the person in writing, but no response, what should be done to register a case of cheating, and which place it should be filed? The place of the bank, where the cheque was dishonoured or the place where the cheque was handed?

A. When you have informed the person about the dishonour of the cheque, in case the information is given within 30 days from the dishonour of the cheque, you can file a Complaint under Section 138 of Negotiable Instrument Act within one month after the expiry of notice period of 30 days. The Complaint for cheating is not maintainable legally. However, in certain cases the police have been registering cases of cheating against the accused.

Q5. I have blank cheques given to me by a partnership firm. Since they owe me some money which I had given to them as a loan. Besides the cheques and the statement of accounts. I do not have anything else. Suppose one day, I suddenly get to know that they have closed the partnership firm and dissolved it, Can I deposit the cheques now and legally raise a claim on them and how?

A. You should fill the cheques and present for encashment. The Partnership Firm as well as partners are personally liable and even after dissolution also the firm and partners are liable. Once the cheques are dishonoured you have to file a suit for recovery of the said amount under the summary procedure provided in Order 37 of Code of Civil Procedure, 1908. You should also file a complaint under Section 138 of the Negotiable Instruments Act. For this you will have to first give a notice, within 30 days of the dishonouring of the cheques. Then if payment is not made within 30 days of receipt of notice a complaint has to be filed within 30 days thereafter.

Also See Article Dishonour of Cheque

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- Vakilno1 is a group of Law Enthusiasts and Legal Experts in India with a passion to provide the latest info and articles on Indian Legal System

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Have Your Say
  1. S. Mehta says:

    Wonderful tips for every men.

    Regards,
    09911939561

  2. Arun says:

    Dear Sir,

    My mother had given hand loans to her friend’s son both in cash and through bank transfers to his firm’s account. The loans were given in good faith and on assurance that it will be returned whenever asked for and also with interest. However the assurances turned out to be a big lie and the person started avoiding all our calls. With great difficulty, we coaxed him into solving the problem for him and obtained his personal cheques, his wife’s personal cheques and a couple of his company cheques. Also, we got him sign on promissory notes. These are the only documents we have. Again, due to the good relationship my mother shares with the parents of this person, my mother gave him almost an year to pay back the principal amount without any interest. Without his knowledge, for want of additional evidence, my brother recorded on his computer the self acceptance by this person of having received the money from my mother. This is the documentary evidence we have in addition to the promissory notes and the cheques. Now, even after repeated requests this person is dodging the payments and there is no sign of the money being returned. This is causing huge mental agony for us in our family and has forced us to have a strained relationship with my mother who is aged 65 years and has affected both her mental and physical health. I am worried of losing my mother due to this tension. Also, I came to know that he has threatened to declare himself as a PAUPER if we approach the court. This statement by him has dampened our hopes of recovering the money from him. Please help and advise. We are on the verge of committing suicide if there is no legal help available and if we cannot get our money back from this man.

  3. pohu says:

    In case of bounce cheque payee shuold be sent to jail if bank memo speaks insuficint funds It is open raud/cheating bank should also black list a/c holders and seal such a/cs till bounce cheque are cleared.

  4. manju devi says:

    sir,hum ye janana chahe ge ki mujhe ak chque company dwara mila hai.aur bounse hogaya hai.to mujhe kitne day ke andar sambandhit farm ko notice de dena chahiye?(farm ko payment cheque dwra diye hai)

  5. AMIT KUMAR SHARMA says:

    15 days is to be counted for drawer to make payment after receipt of notice instead of 30 days. 30 dayes is wrong.

    I have a cheque dishonoured. I have informed the person in writing, but no response, what should be done to register a case of cheating, and which place it should be filed? The place of the bank, where the cheque was dishonoured or the place where the cheque was handed?

    A. When you have informed the person about the dishonour of the cheque, in case the information is given within 30 days from the dishonour of the cheque, you can file a Complaint under Section 138 of Negotiable Instrument Act within one month after the expiry of notice period of 30 days. The Complaint for cheating is not maintainable legally. However, in certain cases the police have been registering cases of cheating against the accused.

  6. ashish says:

    sir my father has taken a plot from a builder but after registry of that land we find that the land is not legally clear we hav given 1 lakh for that land.recently builder has given a cheque of Rs 1lakh instead of paper ,and that cheque has bounced .now can i file a suit on him.pls help..

  7. govindan says:

    i received a cheque from my friend and cheque was dishonoured. i have given notice which he does not reply and now, he abscond from the present address and searched everywhere unable to find him. i have the his PP size photo and voter ID xerox of his previous address. kindly advice who to reover amount

  8. Jastej Singh says:

    you must file a criminal complaint u/s 138 Negotiable Instruments Act at his last known address.

  9. AeyCee says:

    >For Complete info on Dishonour of cheques, please read the article > click here

  10. Jastej S (Team Vakilno1) says:

    you can file a criminal complaint u/s 138 of Negotiable Instruments Act and also under the Consumer Protection Act.

  11. Jastej S (Team Vakilno1) says:

    offence of cheating depends large on the facts and circumstances of the case as narrated by you in your complaint. Otherwise, u/s 138 intention is not there and it is merely a offence considered for commercial transactions. If you narrate certain facts and the police reaches the conclusion that in-fact some kind of cheating had taken place, then the police can register a FIR alsol

  12. ANIL VERMA says:

    I RECEIVED A CHEQUE FROM A BUYER MY PROPERTY FOR 12.65 LAC WHICH WAS WRITTEN BY MY FATHER & SIGNED BY ACCUSED DURING THE TIME OF REGISTRATION OF SALES DEED.SAME CHEQUE BOUNCED DUE TO “STOP PAYMENT” CAN WE FILE A SUIT U/S138 AGAINST HIM.CAN HE RAISE OBJECTION IN THAT CASE ON THE GROUND “CHEQUE WAS WRITTEN BY MY FATHER”

  13. Jastej S (Team Vakilno1) says:

    so far as the first part is concerned, yes you can file a complaint u/s 138 NI Act. So far as the second part is concerned, it entails a lot of research work and might take some time.

  14. Vasudeo says:

    I have a cheque which was bounced one year back. can I take any legal action against the issuer. I have not served any legal notice nor initiated any legal process. Please suggest if I can legal action

  15. Jastej S (Team Vakilno1) says:

    As of now you cannot take any action u/s 138 NI Act. But you can file a civil suit.

  16. Ratan Chinoy says:

    Is a contract document necessary for deciding a cheque bounce case? I have a contract with a sub-contractor whose cheques have bounced repeatedly. He is trying to mislead the court that there are 2 contracts and this should first be investigated. I understand according to layman terms, that a cheque is a promissory note given in lieu of services rendered. When this instrument is dishonored, it becomes an offense under section 138 of the Negotiable Instruments Act if no steps are taken by the issuer of the cheque to honor the payment due within the stipulated time-frame according to the Act. So, does this mean that regardless of any contract, once a cheque is issued for services rendered, it is the responsibility of the payee to ensure that enough funds are maintained to complete payment of cheque issued?
    Please advise me on this point and I would be ever grateful.

  17. N. Damodaran says:

    I hold ICICI Bank credit card and wanted to go for settlement. The collection agent called me and said I need to pay Rs.4550/- immediately to negotiate my settlement amount. I refused to make the payment and said I will do it only after I know my settlement amount. The agent told me as per the bank policy I need to make the said amount immediately as my next statement will be generated in an other 2 days,but,I still refused.The agent repeatedly called me and said that he already told the bank that I am going for settlement and there is no other go if I do not pay he has to pay on my behalf and collect it once he gets me the settlement amount.I told him not to do it and I will never accept it.Few days later I received an email from the bank stating that the cheque issued by me is returned by the banker and arrange for the fresh payment. I called the customercare and informed that I have asked for a settlement and I have not deposited the cheque and it was deposited by their collection agent.They said the complaint has been registered and I will be communicated.When I called the agent he said I need not worry since I am going for the settlement and asked me to wait for 15 days to know the settlement amount.15 days passed and I have not got any response from the agent.I am very much worried and in a state of mental agony. Kindly help me with an answer.

  18. Jastej S (Team Vakilno1) says:

    You should not have waited for 15 days. It could be trick by the agent. You must file a consumer complaint immediately and should also move a complaint to the police (if you feel that you have been cheated).

  19. Jastej S (Team Vakilno1) says:

    As per section 139 NIA, where a cheque is issued, it is presumed that the same has been issued to the holder for discharge of a liability. A contract is to be proved or not, depends on the facts and circumstances of the case.

  20. Raj narayan says:

    Dear Sir,
    I have loaned 3 lac as hand loan by giving 3 nos. 1 lac cheque each in condition to return in instalments. In the mean time I have returned 2,60,000/- having deposited in his bank account. But after several request he did not returned the 2 cheques but bouncese the 3 cheques and filed a case.What steps I can take.

  21. Jastej S (Team Vakilno1) says:

    If your cheques have been misused, then you must take appropriate action ASAP. You should file a complaint with the police for taking necessary action in this regard.

  22. Manmeet says:

    Dear Sir,

    I have a cheque for 45 thousand which was returned back to me due to insufficient funds. I have sent a notice to the person in his company address which was provided to me, but the company closed the operations and therefore the acknowledgement was returned saying door locked.
    I had actually sent the notice to three addresses, 1. to his company address, 2. to an adress I found in internet ( the acknoledgement returned saying the person does not reside in the adress), 3. through the manager of the bank were he has the account ( acknowledgement pending but most likely the adress with the bank is also false). I tried sending a soft copy through email but the domain was closed down.

    Can i file a case without an acknowledgement as I have tried my best to reach out to him? The company adress was the one given to me and he did not notify when he changed the address, in such cases will the acknowledgement saying ‘door locked’ do any good in court?

    Regards
    Manmeet

  23. Jastej S (Team Vakilno1) says:

    Yes you can file a complaint against him but do mention therein that you have made him a party with his last known address.

  24. Manmeet says:

    Thank you very much Sir, I am not clear by what you meant by ” do mention therein that you have made him a party with his last known address. ” . What is the meaning of made him a party in simple terms? Thanks you again..

    Manmeet

  25. Jastej S (Team Vakilno1) says:

    When you file the criminal complaint u/s 138 NI Act, kindly mention in that complaint that you have sent the legal notices to the accused at this last known address. After this you can mention the reason for non-delivery. The reason mentioned by you for non-delivery constitutes constructive notice and it is deemed to be delivered and the complaint is thus maintainable.

  26. manmeet says:

    Thanks a lot Sir…

  27. avinash says:

    sir ky asa h ki esame niact 138 m lower court warent ke bad high court m rs.jama karake intirsepterk batl ho sakta h

  28. sanjay says:

    I sold silver bar to a trader & he gave me a cheque against that silver.that cheque was bounce due to inssufficient funds. My counsel gave him a motice u/s 138 & He returned back half quantity of silver & gave the cheque of balance amount.that cheque was also bounced due to insufficient funds. again we gave him a notice & filed a case against him. he was absent all the court date after NBW he appeared in the court. & gave us a proposal to take money in monthly instalment without interest. My question is if suppose that cheque again dishouner due to insufficient fund than what will be the status of my case .(the case will be continue from NBW or again I have to give him a notice & file fresh case)

  29. Jastej S (Team Vakilno1) says:

    If you compromise the matter and finish this case and in the compromise it is recorded that he will pay in monthly installments and if the cheque given for monthly installment is bounced then you have to file a new case from the beginning after giving him notice. However, in that case he can be tried additionally for contempt of court as well (depending upon the facts and circumstances of the case).

  30. Sanjay says:

    Thanks for your advise. After your advise I don’t want to compromise on this term.I don’t want to waste another 2 years. when I sold him silver he gave me a purchase Invoice along with a cheque.when his cheque bounced we gave him a notice & he returned back half of my silver along with purchase return Invoice, cheque of balance amount & gave a letter that he is in financial trouble, returning half of silver & giving a cheque of balance amount. if new cheque dishonours we can take further legal action against him. later his cheque bounced. we gave him a notice & filed a case against him. he was absent on all the court dates. court issed a BW,still he didn’t came then court issued NBW.then he appeared & court asked him to furnish a bail bond of one lac. My question is what will be the further court process.

  31. Jastej S (Team Vakilno1) says:

    The trial will now start. You shall have to give your evidence in support of your case.

  32. Vinnet says:

    I have given loan to my friend and recieved the blank cheque in return from him . The cheque was in old format. Can i still file suit against him . Please Advice

  33. Jastej S (Team Vakilno1) says:

    In case he has not returned the amount, you can file a case against him on the basis of the said cheque.

  34. Jastej S (Team Vakilno1) says:

    Validity of the cheque is for 6 months. After bouncing of the cheque a notice has to sent within 1 month. The notice should be of 15 days and from date of delivery of notice up-till one month, a case can be filed under section 138 NI Act. So, in my opinion, I don’t think that a case can now be filed u/s 138. However, a civil suit for recovery of money can be filed.

  35. SRIDHARAN says:

    MY CHEQUE WAS DISHONOURED BY MY BANKER – REASON :
    “FUNDS INSUFFICIENT” BUT MY ACOOUNT HAS SUFFICIENT
    CREDIT BALANCE – MORE THAN THE CHEQUE AMOUNT AND THERE IS NO QUESTION OF “INSUFFICIENT FUNDS”
    CAN I TAKE LEGAL ACTION AGAINST THE BANK(S)? UNDER WHICH SECTION – VIZ;
    THE CHEQUE WAS DEPOSITED WITH BANK “X” WHICH SENDS THE CHEQUE FOR CLEARING TO BANK “Y” WHICH DISHONOURS THE CHEQUE WITH REASON “INSUFFICIENT FUNDS”
    CD U PL ADVISE ME HOW SHD I PROCEED LEGALLY AND AGAINST WHOM; I HV ALL DOCUMENTARY PROOF; BANK “Y” REMAIN SILENT – NOT REPLYING TO MY MAILS; IT MAY BE NOTED THAT ACCOUNTS
    INVOLVED R MY OWN ACCTS – TRFR OF FUNDS FROM ONE BK ACCT TO ANOTHER
    PL ADVISE

  36. A cheque issued by the party for payment of a bill. The bounced amount cheque was subsequently paid by the party through NEFT. but the cheque was with me. other bills are outstanding with the party. but party was refused to pay the amount. can I re-reposit the previously bounced cheque for realisation of the other bills. If further cheque bounced then can I take action against the cheque boune under NI Act.

    please give suggession.
    thanking you,
    Arupananda Behera
    +91 9007009098

  37. Sanjay Anand says:

    Sir, i am director in Pvt. Limited company. We had CC limit with bank. Due to financial losses we had to close the unit & went for one time settlement. Bank imposed 3 conditions. To show bonafide, deposit Rs. one lakh, deposit post dated cheque of settled ammount & obtain compromise decree from DRT. We fulfilled first 2 conditions but bank never obtained any compromise decree from DRT & presented the cheque in the bank which got bounced & dragged me to the court under section 138 NIA. Please guide me. Bank has never ever fulfilled the conditions laid down in settlement proposal.

  38. Jastej S (Team Vakilno1) says:

    Either you can file a case in the DRT or you can seek relief from High Court.

  39. Jastej S (Team Vakilno1) says:

    You can file a complaint in the consumer court for deficiency in service. Attach a sworn affidavit along-with your complaint and make all the necessary documents/proof as annexure in the complaint.

  40. SRIDHARAN says:

    SIR,
    THANKS FOR YOUR TIMELY ADVICE;COULD U PL CLARIFY
    AS TO WHICH BANK I SHOULD FILE A COMPLAINT – AGINST THE BANK WHERE THE CHEQUE WAS DEPOSITED FOR CLEARING OR THE BANK WHICH DISHONOURED THE CHEQUE; ALSO I AM IN HYDERAD AND THE BANK BRANCHES R IN CHENNAI; AM I TO CONTACT CONSUMER COURT IN HYDERABAD OR CHENNAI?
    IS THERE ANY TIME LIMIT FOR
    INITIATING LEGAL RECIURSE; PL ADVISE

    * * *
    Jastej S (Team Vakilno1) says:

    July 5, 2013 at 8:16 pm

    You can file a complaint in the consumer court for deficiency in service. Attach a sworn affidavit along-with your complaint and make all the necessary documents/proof as annexure in the complaint.

  41. Jastej S (Team Vakilno1) says:

    Make both the Banks as a party to the complaint. This is because of the reason that it is their internal matter and you being an outsider is not aware as to who is the real culprit. Then both the banks will come out with the actual documents and it will be clear as to which bank is the main culprit. So far as the jurisdiction regarding the place for filing consumer complaint is concerned, it is a mixed question of facts and law, which depends largely upon the facts pleaded by you. The intention of the parties has to be seen. Time Limit for filing consumer complaint is 2 years.

  42. Sanjay Anand says:

    Thanks Sir. Actually the cheque ammount against the settlement is far less than the collectral securities. is there any judgement we can quote in high court. please let me know, shall be highly thankful.

  43. Jastej S (Team Vakilno1) says:

    Judgments can be provided only in a customized manner. For which a perusal of the documents might also be necessary.

  44. sarun says:

    i submitted a cheque OF my customer which contain different numerical figure and words figure and bank returned the cheque. is it is a case of bounce? can i charge bouncing charge?
    please give an answer?

  45. Jitendra says:

    Sir,My bag is lost in my way which contain,two blank cheques(signed),Registration copy,DL,Property paper(xerox).I carry these docs for exchange my bike.When i know that i lost all these i go to police station for complain against these.In polce station they ask me to stope these cheques from my bank.I give them a affedivete regarding my complain.On next day they(police)refuse to lodge FIR,they sugest me that cheques r stopped by bank why i complain for them.Then they only wrote complain for RC n DL.This also seen ok for me that if i stop payment no one draw rupess from my account,but after 6 month i got a notice from Narendra(I never herd this name)that he give me 5 lac for my bussiness.Iam shoked i call to police they said this is ur matter.
    Then i go to lawyer he also send notice to him(Narendra).I ask my lawyer that if i know this person y he not call me for his money.but know i am in great mentel tension from this case and my family.
    I also given add for this in daily newspaper(lost documents)
    plese suggest me what i do now for this.My lawyer said me not to complain against him(Narendra) but i m afrade that he also haveing my other cheque and documents.
    plese sugeest me?

  46. Jastej S (Team Vakilno1) says:

    You need to prove your assertions and defense in the court case filed against you. You will be given an opportunity to prove your innocence during trial.

  47. Jastej S (Team Vakilno1) says:

    In my opinion, it might not be considered as a bouncing of cheque. The bank’s remarks are important in this case.

  48. Jawahar says:

    I use to work in company as director whose MD stays in USA. I use to work on his instructions regarding the payments to parties.

    My company has taken hand loan in Dec 2010 from some individual through chq on companies name and as per instructions of MD i have signed Chq and give them without writing date on the chq. I have stopped going to office from Feb 2011 and not aware of day to day activities of the company.

    Company did not repay the payment and the chq got bounced in sep 2011 and they issued legal notice to old office address. I have not received any notice. I have officially resigned from company in Jan 2012. After submitting resignation letter i got summons from court to attend regarding the chq bounce.

    Now the problem is i am liable for the chq bounce because i have acted as per MD’s instruction.

  49. Jastej S (Team Vakilno1) says:

    As such, the general rule is that only company is liable for the debts incurred in relation to company matters. However, u/s 138 NIA, the Director can be made liable if he was managing the affairs of the company and was responsible for the bouncing of cheque. The onus of proof is generally on the complainant to prove the same.

  50. PRAKASH.M says:

    Sir,my uncle has given money to relative,he has given me a cheque return, but when we go bank for withdraw bank,bank said this account is already closed nd no money,sir i talk tothat person he said,”jo banta hey kar loo” he refuse what shall i do ,sir its a case of section-420/or138.plz reply soon
    thanks….

  51. p.mishra says:

    remaining matters :
    Respt.Sir,my uncle has given money to relative,he has given me a cheque return, but when we go bank for withdraw,bank said this account is already closed nd no money,Is some action also can we taken aganist banks i.e.why they not taken cheque book of cheater.or what action taken so both bank as well as cheater hard action of ipc.plz tell soon

  52. Jastej S (Team Vakilno1) says:

    For bouncing of the cheque, the person who has signed and given the cheque can be prosecuted u/s 138 of Negotiable Instruments Act.

  53. vikrant says:

    DEAR SIR;
    PLEASE GUIDE ME THAT,” UNDER WHICH CONDITION SEC 138 OF IPC IS CHARGED OR ATTRACT WHICH CONDITION”

    1) THERE IS SUFFICIENT FUND IN AN ACCOUNT OF BANK
    2) CHEQUE WAS RETURN BY BANK DUE TO STOP PAYMENT REQUEST BY US.
    3)POST DATED CHEQUE ISSUED AGAINST SECURITY OF PAYMENT & AGAINST CANCELLATION DEED OR AGREEMENT BUT AGREEMENT NOT PREPAIRED TILL ON DATE.

  54. Vikram Rathore says:

    Now a days the cheque format is new and not old one, can a old cheque in which no date has been mentioned by the drawer , be still use in a case of 138 NIA Act. Kindly reply soonly.

  55. please help me in a case registered from hdfc bank in jamshedpur(jharkhand) sdjm court.
    i took a auto loan for my car in mar 2010.in this loan my mother was my co borrower/guarantor.
    since feb 2012 i was not able to pay the entire emi on time.so i started giving 10000,5000 or sometimes the whole emi of 15561 per month.
    last year on 5th sep 2012, i got a letter from the bank saying that a cheque of 46683/- has bounced on 25.07.2012 and you are requested to pay the amount.
    i spoke to the bank representative(who was taking the money from me every month) regarding this immediately, he told me sir this is the general process of the bank to send the notice.he told me to ignore this as u r paying some amount every month.

    yesterday (on 30/08/2013) i received a summon from sdjm jamshedpur to appear in the court on 22/08/2013.surprisingly the car is in my name but the summon was in the name of my mother, as the cheque they had bounced was of my mother given at the time of loan as the guarantee.
    sir i live in muzaffarpur bihar and the case is registered in jamshedpur so it is difficult for me to check its genuineness.
    sir please note that i have given approx 80000/- in last year till today on monthly basis to the bank staff(recovery agent in cash not in the bank account).

    i have all the money reciept given by the bank staff.
    when i spoke to bank representative today to give him 46683/- in the bank account from which the the cheque has bounced, he told me to give in cash. and told me that if you give me the total dues of 200000/- then only the case will be taken back or compromised.and if you give me 46683/- then we will take 4-5 months time from the court and your case will not be taken back but you will get 4-5 months time to pay back the dues.
    sir please help me in this regard. i am very much tensed as they have filed the case on my mother who is senior citizen.

    can the case be transferred to muzaffarpur on the ground that my mother is senior citizen and female?
    what should be done in this case?
    can i believe the bank representative that after paying 46683/- i will get 4-5 months of time?
    sir please help me…

    tausif siddiqui
    maripur
    power house chowk
    muzaffarpur
    bihar

  56. We did invested in M/S Ind Swift Laboratories Limited, (Chandigarh based) Fixed deposit. Company had given post dated cheques for principle and Interest before one year. These cheques were hand written. We asked the company immediately on receiving these cheques whether they will be hounoured on the due date, they assured us about that. On due date we learnt that there is no fund in their account. when we contacted the company on phone, they verbaly told to return these cheques and they will issue another cheques. We also learnt that there are many case pending with this company. and the fixed depositor drag the company to Company law board court. We also learnt and told on phone that they will return principle amount in three years with nominal interest rate of 6%. Please advise what we should do.
    1) Whether we should file case against them in court?
    2) Should we return the original bounce cheque to the company for replacement?
    3) If then, the company just give excuse that the company has applied for restructuring of funds, court will give favour to company and allow to pay principle in three years?

    Please reply.

  57. santosh says:

    In case of cheque being dishonoured , and after due legal procedure , if the drawer of the cheque is convicted and sent to prison, then does his liabilty to pay to the beneficiary of the cheque nullified ?
    means the drawer gets a jail sentence and the drawee doesnt get his funds back ?
    pls. advise.
    thx & b/rgds.
    Santosh.

  58. tara sangwan says:

    sir papa ji ne ek property sale ki thi other party ne ek cheque diya tha 8 mahine ki bad ki date ka jo registry me mention tha ab cheque clear ni hua to kya registry cancel ho skti h papa g ki last month death ho gyi thi plz suggest me kya ho skta h plz sir

  59. vikram raj says:

    Sir,

    A person(my dads friend) has taken a hand loan from my mom.
    he gave my mom a cheque, but it bounced ( reason stated) account closed . we sent him a legal notice to repay the money .
    After 5 days he sent us a notice back stating a fake story that my dad has been running a finance businness and my dad had took the cheque from him for security purpose. he has alleged my mom of forgery, saying that my mom has writen her name on the cheque.

    what should we do now.

    Urgent reply needed …. waaaiting fr ur response

  60. M L SHARMA says:

    CAN HE CONTINUE HIS OLD BANK ACCOUNT AFTER DISOLUTION OF PARTNERSHIP WHICH IS EARLIER OPENED IN NAME OF PARTNERSHIP FIRM. FOR TRASECTION OF HIS NEW PROP BUSINESS

    CAN CHEQUE ISSUED AGAINST LIABILIYIES OF HIS NEW PROP BUSINESS CAN BE PRESENTED FOR PAYMENT IN HIS OLD BANK ACCOUNT WHICH IS IN NAME OF PARTNERSHIP FIRM

    THAT IN VIEW OF SECTION 138 OF NI ACT , IT IS VALIED PRESENTATION OF CHEQUE IN HIS OLD BANK ACCOUNT WHICH WAS IN NAME OF OLD PARTNERSHIP FIRM

    NOTICE OF DEMAND FOR PAYMENT AGAINST DISHONNERED CHEQUE IS GIVEN FROM NEW PROP FIRM – IT IS VALIED ?

  61. M L SHARMA says:

    ABC WAS PARTNERSHIP FIRM COSNSIT OF A & B TWO PARTNERS.

    ON 31-3-2008 ONE PARTNER B HAS RETIRED FROM PARTNERSHIP AND
    NOW WEF 1-4-2008 THE BUSINESS OF AFORESAID PARTNERSHIP IS CARRYING ON BY REMAINING PARTNER A IN HIS PROPRIETORSHP STATUS.

    AFTER DISOLUTION OF PARTNESHIP HE DID NOT CHANGED HIS BANK ACCOUNT WHICH WAS OPENED IN NAME OF THAT PARTNERSHI FIRM .
    HE IS CONTINIOUSLY USING THAT BANK ACCOUNT FOR TRASECTION OF NEW PROP BUSINESS.

    DUE TO ANY DISPUTE A IS HOLDING MY BLANK SIGNED CHEQUE IN HIS POSSESSION. TO TAKE USE OF THAT CHEQUE HE PREPARE A BILL DATED 23-11-2008 FOR Rs 100000/- AND FILLUP THAT SIGNED BLANK CHEQUE ON 16-2-2009 AND PRESENTED THAT FOR PAYMENT IN HIS OLD BANK ACCOUNT WHICH IS STILL IN NAME OF THAT PARTNERSHIP FIRM, WHICH WAS RETURN BY THE BANK UNPAID WITH A REMARK ( PAYMENT STOPED BY THYE DRAWER) AS I HAD MAKE STOP PAYMENT FOR THAT CHEQUE.

    I WANT TO KNOW THAT :

    CAN HE CONTINUE HIS OLD BANK ACCOUNT AFTER DISOLUTION OF PARTNERSHIP WHICH IS EARLIER OPENED IN NAME OF PARTNERSHIP FIRM. FOR TRASECTION OF HIS NEW PROP BUSINESS

    CAN CHEQUE ISSUED AGAINST LIABILIYIES OF HIS NEW PROP BUSINESS CAN BE PRESENTED FOR PAYMENT IN HIS OLD BANK ACCOUNT WHICH IS IN NAME OF PARTNERSHIP FIRM

    THAT IN VIEW OF SECTION 138 OF NI ACT , IT IS VALIED PRESENTATION OF CHEQUE IN HIS OLD BANK ACCOUNT WHICH WAS IN NAME OF OLD PARTNERSHIP FIRM

    NOTICE OF DEMAND FOR PAYMENT AGAINST DISHONNERED CHEQUE IS GIVEN FROM NEW PROP FIRM – IT IS VALIED ?

  62. pawan kunar says:

    sir g ma yeh janna chata hu k cheque dishonour case me case karne wala yeh keh sakta k mane 300000/- ke payment cash de ha kya court yeh bat sawikar kar sakti ha

  63. Sir,

    I hav filled a case of dishonor of cheque and sent the notice way back but his lawyer objected the case by taking the example of M.D.Thomas vs P.S. Jaleel & Anr. on 13 April, 2009 that as accused is not available at the time of receipt of notice so case should be dismissed.so could u tell me that in case of m.d. Thomas is their any discriprency so that case had been dismissed because if dishonor of case dismissed because if accused hd not received the notice then there r many more case left behind which can be dismissed on the ground of non availability of accused in receiving the notice.

  64. gopal g g says:

    if there is no debt but cheque is obtained by threatening and these cheque bounce would the drower convicted under section 138 of negotiable instrument act 1881.blank blank cheque signed by drower but holder of cheque mis used cheque. holder fill huge amount on cheque and present in the bank. cheque was bounced. there is no debt. actual amount is very low .if holder blackmaling and harass to the drower then what is remidy for inocent cheque drower

  65. if there is no debt but cheque is obtained by threatening and these cheque bounce would the drower convicted under section 138 of negotiable instrument act 1881.blank blank cheque signed by drower but holder of cheque mis used cheque. holder fill huge amount on cheque and present in the bank. cheque was bounced. there is no debt. actual amount is very low .if holder blackmaling and harass to the drower then what is remidy for inocent cheque drower

  66. Anonymous says:

    sir, i taken a shop from old tenent, actual owner is diff. earlier tenent has some furniture with that shop. tenent has wisely successful to sell all his furniture to new tenent & after that he made shop agreement of new tenent to shop owner, By speaking well he commited all his furniture was well but it was his wrong commitment, he listed items like computer, a/c , printer all were faulty but wisely he taken all the amount cheque from the new tenent, new tenent has issued him cheque without dated & old tenent forget to do the agreement of these without dated cheqes with new tenent. When new tenent realised that he is cheated he stopped the payment. after that old tenent dropped the cheques & returned back with a remark” Payment stopped” but old tenent filed a case of 138 against new tenent,
    ** imp–can new tenent file 138 case in this condition if there is no agreement duly signed bretween both of them, can old tenent write dates on cheque by him without agreement. if new tenent taken stand in reply notice that these cheques were given as a security till agreement done, will that 138 case stand in court from old tenent ? pl. suggest. i m new tenent.

  67. sanil says:

    I would like to refer a cheque received and bounce case in 1998, where builder had taken blank receipt against cheque from me and filled with his handwritting that cash received. Finally builder lawyer managed to say that cash paid by builder and he had demanded cheque, which was misplaced. Court given verdict in 2007 to builders favour. This was totally unfair, since he had not paid any cash tome. pls suggest how to take the matter.

  68. Anonymous says:

    in a ltd., company ,one of the business partner bounce cheques for more tha 20lacs and we have taken letter form the partner also that he will be paying the amount in certain dates , but he failed to pay the amount. and we have sent the lawyer notice to him for that he replied from his lawyer saying that he dose not have any outstanding.

    so we have filed the complaint in the court , need to know how many months it will be taken by the court to close the case…

  69. Veer says:

    Sir,

    I have an issue regarding bounce cheque. earlier I was living in PG (Paying Guest), & I have got a cheque of reversal of deposit when I left PG. check clearing date was 2 month before. I’ve met many times to the owner but every time he say “give me some more time”.
    I want to know :
    1. what can I do legally ?
    2. can I file case in consumer court ?
    Remember check clearing date was 2 month before.

  70. Ankit sharma says:

    Sir i joined a job some days ago, and they people took a check from as a security of aggreement. After joining of two days i had to left the job and they people tried to withdraw the check and it was dishonored by the bank because of signature mismatch. So they sent me a notice to pay them so please tell me how to handle the situation and pay them money so can they can not fire a case against me.
    Thanks in advance.
    Ankit sharma

  71. Rani says:

    Dear Sir,
    I like your quick advice.
    I gave cheque for october month bill to EB. After 2 months I gave cheque for December month bill on December. December month bill cheque was passed it seems. But I don’t know what happened to my October month bill cheque, they are saying it was dishonoured on 15-10-13, so we have to pay with dishourned cheque penalty. I had and have more than enough money to pay for cheques. They didnt even inform us.
    So what should we do now.

    Thanks in advance.

  72. Sagar says:

    Dear Sir,

    My father had given 30 lakh rupees one of his friend to buy the land and my father has taken the same ammount cheque from that friend. But now that friend is neither returning the money nor he is denying to return. and almost two months has been passed.

    at last My father deposited the cheque in bank and that cheque has been bounced. After that my father took a help of court and sent the legal notice against the fraud friend.

    My question is,
    1. Can my father get to return the amount from the fraud friend throung the legal steps? is it true, court are liable for this?

    2. If yes, that how much time court will clear the judgement?

    3. After the judgemnet, can the fraud friend appeal in high court and after that supreme court?

    I am waiting your reply. thanks.

  73. Ankit says:

    when a cheque is dishonoured for the reason of insufficient funds and account inactive .Is account inactive not a offence under dishonour of cheque?

  74. Chanchal saini says:

    There is a situation that i have an account and i have had the balance of the 14780 Rs.in my account and i issued the one cheque of amount of 14000 Rs.in that case my cheque was dishonor due to insufficient balance, because company minimum balance requirement of 1000 Rs. in that case can company dishonor the cheque.

  75. pg parida says:

    dear sir,
    I have given some loan to my friend in return he was giving me cheques without date , now my friend was dead ,he has a wife and a kid ,Can I claim my amount on his sucerros/beneficiary or on his father’s property ,kindly advice

  76. mohit says:

    i have misplace my cheque and i inform to the bank so what can i do for sec 138 is not applicable for me : some person present the cheque so how can i safe and what formalities for stop and cancel the ceque and i safe for all the matters.
    kindly advice

  77. shahabuddin says:

    Dear sir,
    A cheque was issued to me against my bill payment,it got bounced four times,once for insufficient fund ,once effect not clrared,once present again,once drawer has stopped payment,the bank also involved in manipulation with the account holder,what action can i take against the bank involved in this case,please advice

  78. Sir I have issued legal notice for cheque bounce after bounce of 30 days and I have filed petition before court withing 45 days but the court has returned my complaint what is legal remedy

  79. Richard says:

    Sir, Cheque issued to me to me was returned twice (“Funds Insuff.”), I issued Notice u/s. 138(b), recd. reply to the notice with replacement cheque with in time (15 days), replacement cheque pdc 15 days also returned (“Funds Insuff.”). Plz. suggest what should I do now original notice is almost 40 days old reply 25 days).

  80. Rajesh says:

    Dear Sir,
    i had given some money to my friend few years back to help in his business with a promise that whenever i need back he will give back the money with some interest.instead he gave me a signed cheque with the same amount mentioned but without date.now i am in need of the money but he is denying to give it back. i have not yet honoured the cheque in the bank as he has CLOSED his account in the bank of which he had given me the cheque.Plz advice me what to do so that i can take legal action against him.he has done the same thing to few other peoples also and they have taken legal actions against him, i also want to go through legally but due to his closure of his account i am not able to understand what to do?Plz.suggest me and what time it can take in the court.

  81. AKHIL MITTAL says:

    sir
    we have lost one bearer cheque (issued as SELF)For rs 200000.00 . I intimated the bank for the same . now a party from which I have some business dealings, got my this chque dishounoued by the bank , after three months from the date we have intimated the bank for the cheque being lost by us.
    Bank returned the cheque as stopped payment plus insufficiency of fund. party has issued us a notice
    please guide us in the matter.

  82. Omprakash mathur says:

    cheak bounce par 2 sal karawas abhiyukat bhugtne ke liye teyar hai.kripya btaye ki rashi fir bhi milegi ya nhi.

  83. Dear sir,
    ME and my friend both were trying to start a new firm under partnership,so that he had invested sum of amt 3.28 lac ( there is no separate agreement on partnership, but amount mentioned in 100 rs notrified stamp) Due to some unfavorable reason, we both are came on conclusion not to go further and the result is that firm was not born( also mentioned in same stamp)
    But sir against above that things, i have given him cheque for security purpose ( the word “security” cheque no, cheque date, amt mentioned in 100 rs notrified stamp) as well as on cheque i wrote in my own hand writing in blue ink 3,28000 in digits & date.My friend wrote in his own hand writing in black ink, my name & amount in in words.
    Now the situation is that my friend has discharge cheque in bank & cheque dishonored due to insufficient funds.Now he filled case under sec 138 NIA.
    Sir plz advise me.what he can recover his fund by sec under 138…whatwill be the court view..
    9665408828

  84. An intriguing discussion is definitely worth comment.
    I do think that you ought to publish more on this subject matter, it might not be a taboo subject but usually folks don’t discuss these issues.
    To the next! Cheers!!

  85. HItesh Jain says:

    we are a trading company and sold goods to a partnership firm. The firm got dissolved and one of the partners undertook to clear the dues by issuing cheques from his personal account on behalf of the firm. But one of the cheques issued by the erstwhile partner got dishonored. we have got a undertaking signed by the partner on stamp paper that he will discharge the liability inspite of his retirement or dissloution of the firm.

    Please advise the legal recourse.

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