Legal Question in Banking Law in India

can we file suit against payer (student) in negotiable instrument act u/s 138 for cheque bounce after 8 months. Cheque was issued in June 2014 towards payment of fee for the b.ed. course and deposited two times in bank in July 2014 and same was dishonourd two times by the bank after that student was also issued legal notice and he replied that he will pay the amount as and when we will arrange amount but still he did not pay any amount while he passed b.ed degree from our college and university declared his result. Now whether suit can be filed against him or not while about eights months have passed


Asked on 2/22/15, 11:23 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

23.02.2015

Dear Sir / Madam,

The following two conditions ought to be fulfilled for filing a case of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 :

1. A notice ought to have been served on the drawer / payer of the cheque by the drawee / payee within a period of one month from the date of intimation of dishonour of cheque by the Bank to the drawee / payee and;

2. The drawer / payer ought to have failed to make the payment settlement of the amount of the dishonoured cheque to the drawee / payee within 15 days from the date of receipt of above notice.

If the above two conditions are fulfilled, a recovery suit can be filed.

Regards,

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Answered on 2/23/15, 9:22 am


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