• Returned Cheque – Insufficient Balance

Respected Sir / Madam,
A cheque issued to me (Amount is in a few tens of thousands) was returned back by the Payers Bank stating Insufficient Funds.

I waited for a few days and deposited again however it again returned back for the same reason.

Is this an offence done by the issuer and if yes, what actions are possible under the legal system.
What legal rights does the Payee (i.e. myself here) have in such a case.

Thanks and regards,
ramy
Asked in Civil Law from Pune, Maharashtra
Yes you all the rights to get your money and also he can be punished for criminal offence. You must serve him a legal notice through a lawyer within 30 days of date of bouncing of the cheque giving 15 days to drawer to pay the amount,if he fail to pay within 15 days then you must have to file criminal complaint within 30 days thereafter under section 138 of N.I.Act. Feel free to call.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

4.8 on 5.0

Issue a legal notice  to the payer through a lawyer intimating the fact of dishonour of cheque and why action should not be taken against him U/s.138 of negotiable instruments act  and set a time limit of 15 days to one month for the payer to act. If no answer is forthcoming from the payer then you file suit U/s.138 of negotiable instruments act, 1881 to recover your money.
Shashidhar S. Sastry
Advocate, Bangalore
1338 Answers
75 Consultations

5.0 on 5.0

1) issue legal notice within period of 30 days of receipt of intimation of dishonour from your bank 

2) the drawer has 15 days to make payment on receipt of notice 

3) if he fails to make payment within 15 days file complaint under section  138 NI for dishonour of cheque within period of one month
Ajay Sethi
Advocate, Mumbai
28541 Answers
1548 Consultations

5.0 on 5.0

1. Issue a lawyer's notice to the drawer within 30 days demanding payment of the amount covered by the cheque.

2. If amount is not paid within 15 days the n file a case for cheque bounce and also recovery of money in the local court. Cheque bounce is an offence punishable with an imprisonment of up to 2 years.
Ashish Davessar
Advocate, Jaipur
19896 Answers
520 Consultations

5.0 on 5.0

1. You shall have to issue a legal notice within 30 days from the date of the check return memo issued by the Bank giving the drawer of the check to pay you the said amount within 15 days thereof,

2. If he fails to pay you the amount mentioned in the cheque within the specified period of 15 days, you can file a case against him within 30 days thereof u/s138 of N.I.Act.
Krishna Kishore Ganguly
Advocate, Kolkata
13940 Answers
309 Consultations

5.0 on 5.0

Make a demand for the payment of the said amount of money by giving a legal notice within a 30 days  to the owner of the check.

If he fail to pay you the amount within the specified periodvof 15 days, then you can file a case against him under section 138 of the Negotiable instrument act.
Vineeta Rawat
Advocate, Faridabad
5 Answers
0 Consultations

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