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Rohit Kadam
in Banking Law Civil Law
Asked August 31, 2017

Remedy for cheque bounce

  • 2 Answers

Even after completing 7 months of exit from my previous company, I haven't received my full and final settlement amount. My previous company has issued post dated cheque of 31 August 2017 but I am sure that it will bounce. So what is legal action if cheque is bounced and in that case I need one lawyer to send them a notice.

Answers 2

You should wait for the cheque to bounce and if it does bounce then you have remedy under the Negotiable Instruments Act, 1881, Section 138. Before filing a case against him take all steps on your end i.e. deposit the cheque within 6 months from the date it is drawn. If it gets bounced the bank will give you a memo and return the cheque, use this as evidence and send formal notice within one month to the person giving you cheque to notify about such bounce and the person should pay you the money within 15 days. if there is failure to do so you should file a case.



Relevant section is given below:


138 Dishonour of cheque for insufficiency, etc., of funds in the account. —Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment for 19 [a term which may be extended to two years], or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless—

(a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, 20 [within thirty days] of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Explanation.— For the purposes of this section, “debt or other liability” means a legally enforceable debt or other liability.]

Agree Comment 0 Agrees over 3 years ago

You can post your case here for a lawyer:

Agree Comment 0 Agrees over 3 years ago

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