Legal Question in Banking Law in India

Re: Bounced cheque responsibility

Good Evening

According to the Section 138 of the Negotiable Instruments Act yes the bank will take issue a notice against your friend. and as far the bill which is pending on your name you will be included in the same legal notice and apart from that bank will issue a debt recovery notice as well if you fail to make the payments.

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Re: Bounced cheque responsibility

there is not so much of problem and dont worry about the cheque bounce case

there will be no cheque bounce case but they will call you again and again for payment of the amount.

they will levy charges till u will not pay but you can ask that u will pay only when the charges will be removed and be cautious

Re: Bounced cheque responsibility

They will charge some extra money as penalty on it when you will give such amount of your credit card.After a limited amout of credit they will send you a notice.So pls pay your balanced amount of credit card.

Re: Bounced cheque responsibility

1.Yes.2.May be. 3.Yes.

Re: Bounced cheque responsibility

Under Section 138 of the Negotiable Instruments Act the bank can well issue a notice against your friend. and as far the bill which is pending on your name you will be included in the same legal notice and apart from that bank will issue notice as well if you fail to make the payments. The case is such that you will require to pay the amount of involved cheque within 15 days of notice

Re: Bounced cheque responsibility

The person who can be prosecuted for bouncing of the cheque is the drawer, i.e. in your case, your friend whose cheque bounced. I don't think that the credit card issuer would normally go in for such a proceeding, as a proceeding under Sec.138 is long winded and expensive. The Bank will proceed against you for recovery of the defaulted amount as per other avenues open to them for recovery, just as filing suit, as they might be loathe to go in for extra-judicial modes of recovery through musclemen of the recovery agencies in view of the recent Supreme Court warning.