• Cheque bounce

We are in service industry. One of our clients is not paying us. His cheques are frequently bouncing. Want to take legal action regarding the cheque bounce.
Asked 2 years ago in Criminal Law from New Delhi, Delhi
Present the check before bank for encasement and after getting bouncing information from the bank send a demand notice within one month from receiving the information from the bank and mentioned 15 days period in the notice as per section 138 Of N.I.Act.
if the person is not ready to make payment within 15 days from receipt of the notice then you may file the criminal complaint against him before court.
Contact personally or over the phone.
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
Hello,
If the cheque is getting returned you need to file a case under section 18 of the Negotiable Instruments Act.
Once the cheque bounces get a legal notice sent and follow up.
Engage a lawyer locally to assist you.
In the future demand alternate modes of payment from your client.
In order to take legal action under current circumstances, do engage a lawyer.Provide him with the copy of the returned cheque and the memo attached by the bank indicating the reason for return.
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0
Present the cheque before the bank, you will receive a Bank memo stating the reason for return of the cheque.  
.On receipt of the information about the dishonour of the cheque you immediately issue notice Demanding payment of the cheque amount within 15 days of receipt of notice.If the company does not pay the amount within 15 days from the receipt of the notice, you can file complaint under Section 138 of the Negotiatble Instrument Act.
Sudershani Ray
Advocate, New Delhi
192 Answers
25 Consultations
4.9 on 5.0
1. You shall have to send him a notice within 15 days from the date of your coming to know about the dishonour of the said cheque. demanding the amount with in 15 days thereof,

2. If he does not comply with your demand you shall have to file a case u/s138 of N.I.Act,

3. Engage a local lawyer having expertise in the field.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
If your client's cheques frequently dishonur then take some deposits as security before supplying your  goods or rendering services. Whenever a cheques gets dishonour on presentation and you get information from the bank,you need to issue a legal notice through a lawyer within one month from that date of intimation asking him to pay the amount of cheque dishonoured within 15 days and if he fails to pay the amount despite service of legal notice then file case within one month under section 138 of N.I.Act
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations
4.8 on 5.0
dear client, you have to present the cheque before bank in case of dishonour legal notice is to be sent with in 1 month of dishonour, you may file criminal complain under 138 of NI ACT after 15 days of notice. mind it as per latest ruling of supreme court you have to file complain only in the jurisdiction of accused bank. for detail you may call
Avdhesh Chaudhary
Advocate, Greater Noida
565 Answers
20 Consultations
3.9 on 5.0
When cheque is bounced or dishonored by the bank then you should follow these steps :-
1. After getting information from the bank that cheque is dishonoed then send him (drawer of the cheque) a notice within 30 days( from the date you received an information from the bank )  that your cheque is dishonored by the bank.
2. On the date when notice duly served on the drawer( means when drawer received your notice ) grace period starts , if drawer did not make payment within 15 days from the date of notice received then cause of action arises.
3. you must file a complaint within 30 days ( from the date when cause of action arised )  in the Court of judicial magistrate of first class.
4. Dashrath Rupsingh Rathod vs State Of Maharashtra & Anr (2014) the Supreme court is held that complaint shall be instituted in the court in whose local jurisdiction drawee band is situated. so according to this judgment you choose proper court.
Shivendra Pratap Singh
Advocate, Lucknow
2786 Answers
41 Consultations
4.9 on 5.0
1. If his cheques are bouncing frequently then you ought to have filed a case for cheque bounce against him by now. Bouncing of cheque issued by the drawer(your client) entitles you to set in motion legal proceedings for the prosecution of your client and also for recovery of the amount due to you.

2. Issue through your lawyer a lawyer's notice to your client within 30 days from the official communique of the bouncing of the cheque. If he does not pay back within 15 days the amount he owes to you then you may file a criminal case for his prosecution for the offence of cheque bounce. In addition thereto you may also file a case for recovery of the principal amount with interest against him.
Ashish Davessar
Advocate, Jaipur
18242 Answers
449 Consultations
5.0 on 5.0
If your client gives you cheque without money in the account produce that cheque in the bank in your account when no balance in the cheque account with the memo issued by the bank as insufficient fund you may issue a legal notice under NI Act thereafter court proceedings in the court follows as civil suit by which you can recover the amount
Brijendra Kumar Vishwakarma
Advocate, Kanpur
117 Answers
0 Consultations
3.3 on 5.0
The first step is to send a legal notice to the defaulter within 30 days of receiving the cheque return memo.
If there is no payment from the defaulter then file a complaint under section 138 of The Negotiable Instruments Act.
However, the complaint should be registered in a magistrate court within a month of expiry of notice period. 
Or you can file a separate suit for recovery of cheque amount and lost interest under order 37 of CrCP (1908). There are special courts that handle purely cheque bouncing cases where you may file a suit and it will be fast tracked.  Dishonour of a negotiable instrument is one of the few crimes for which a party can receive both, a civil as well a criminal remedy. While the judge penalizes the other party under the criminal law, he will still acknowledge the money due to you/your company and refund the same.
Adryan Gonsalves
Advocate, Mumbai
3 Answers
0 Consultations
5.0 on 5.0
Dashrath Rupsingh Rathod vs State Of Maharashtra & Anr on 1 August, 2014
Sayan Ray
Advocate, Kolkata
4 Answers
0 Consultations
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