Legal Question in Credit and Debt Law in India

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I run a playschool in Delhi. Recently , I had a new admission for which the parent paid us through cheque as advance. The mother of the child after 1 week of services discontinued stating that she did not like the school and also got her checque stop payment. I got a penalty of 500 from my bank for that checque decline and now that lady is not ready to pay a penny for the services. The form clearly mentioned in the admission form that she signed that the fee is non refundable irrespective of that she is not willing to pay and tells me to do whatever I can. What is the procedure to get my money in such a case ?


Asked on 3/25/15, 2:45 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP

26.03.2015

Dear Madam / Sir,

Your first line of action is to preserve your bank's debit advice and intimation of cheque dishonour and notice of Rs. 500/- (Rupees Five Hundred Only) charged to you by the Bank for cheque bouncing, and the physical cheque of the parent returned back to you by your Bank with the advice in your custody. You have a time period of 30 (thirty) days from the date of receipt of intimation of the cheque dishonour from your Bank, to file a recovery claim (with costs) against the parent(s) for their cheque dishonour under Section 138 of the Negotiable Instruments Act, 1938. You should now ask the child's parent(s) who is / are liable to validly justify to you in writing within 3 days, his / her reason(s) for non-payment of your fees (non-refundable) despite having already acknowledged and accepted in writing all the terms and conditions, rules and regulations of the play school, and in view of the child having already attended the school for one full week, failing which, to immediately pay up and settle the due fees immediately. Mention clearly in your note to the parent(s) that should you not receive the due fees plus Rs. 500/- penalty that you have incurred, within the next 7 days, you may lodge an FIR in the local Police station against the parent(s) for "cheating". If the parent(s) still choose to remain adamant and he/she simply ignores you, file the recovery claim against the parent(s) with costs for paying you twice the dishonoured cheque amount under Section 138 of the Negotiable Instruments Act.

Regards,

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Answered on 3/25/15, 11:29 pm


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