• Cheque bounce

Sir, please advise if I can file a case when of cheque bounce even after the concerned person has stopped the cheque in the bank. That means the person who gave the cheque has told the manager not to honour and block it so that the cheque will not be called bounced cheque. What should I do?
Asked 1 year ago in Business Law from BAngalore, Karnataka
1) you can file complaint under section 138 of negotiable instrument act in case it is returned on grounds payment stopped by drawer 

2) issue legal notice within period of one month of receipt of intimation of dishonour 

3) if drawer does not reply within period of 15 days of receipt of notice file complaint under section. 138  NI
Ajay Sethi
Advocate, Mumbai
23328 Answers
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1. This is amounting to dishonour of cheque as a result of which you can file case u/s 138 NI Act.
2. For this you have to send the defaulter notice within 1 month from the date of stop cheque  giving him further 15 days time and then to file case within 1 month from the expiry of the said 15 days.
3. You can file separate civil suit for recovery of money as well. For this no pro-note is required.
Devajyoti Barman
Advocate, Kolkata
5239 Answers
54 Consultations
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1. Stopping the payment of cheque by instructions to the bank does not diminish your right to prosecute him for the cheque bounce.

2. If the cheque has bounced due to stopping of the payment you should issue a legal notice to the drawer and follow it by filing the case if required.

3. Holding a pro note is not mandatory to launch a prosecution for cheque bounce.

Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
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1. The Supreme Court has held that its an offence if the drawer stops cheque payment.
2. You can take legal action against the drawer U/s.138 of Negotiable Instruments Act.  However you have to prove that there was a legally enforceable liability. In other words, you should have strong evidence that the amount is due to you from the drawer, like some written document.
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
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You may first present the cheque for encasement before bank and If cheque got bounced then the bank  issue a memo to you can after receiving the memo you have to issue a legal notice and demand you money if he is not make the payment within 15 days from the receiving of the notice you may file a complaint before criminal court under section 138 of NI ACT.

Apart from this you may also file a civil suit before civil court for recovery of money with interest.
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
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Even if he drawer of the cheque  instructs bank to  stop payment on presentation, it amounts to  an offence under the provisions of 138  NI Act dealing with the cheque bounce cases. Therefore the drawer cannot absolve the liability by instructing the bank to stop payment on the cheque when  presented before it. 
You cannot create pro-note at this stage which will be legal infirmity. You can obtain  a pro-note duly filled and signed by the borrower  and utilise it for money recovery suit.
Basically cheque bounce case is criminal in nature, it will not make the complainant entitled to the cheque amount, only fines and compensation can be awarded by the discretion of court. 
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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1. If the amount of the  chque deposited by you is not credited to your account, hen it is the responsibility of our Banker to inform ou the reason,

2. It is strange that you are claiming that the said cheque has been blocked by the Branch Manager since there is nothing called blocking of cheque. ither the cheque is honoured or sent back being dishonoured,

3.Send a legal notice to our Bank Manager asking him to give cridit of the cheue amount or inform you about the status of the heque,

4. However, you can file a case u/s138 of N.I. Act on receipt of he cheque dishonour memo from our Bank.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
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1. No Pro Note is required mandatory to be produced or filing case u/s138 of N.I. Act,

2. You are required to establish the dischargeable liability of the drawer of he cheque for which it was issued,

3. If you have such evidence, you can file he case u/s138 of N.I.Act,
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
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