Legal Question in Banking Law in India

Cheque bounce issue and Notice period
Sir, if cheque is bounced and also 15 days is over and the payee has not served any notice to drawer, so after 15 days of cheque bounce can payee send notice to drawers to file a complaint? Or if 15 days got over that cheques validity get expires? Or payee can deposit the check once again to send a fresh notice to the drawer?
with my little knowledge from here and there I came to know that once 15 days over if payee has not serverd any notice then payee can not deposit once again to the bank and the cases becomes weak, is this true or false?
To add some more information to above, the payee is a money lender and he is not registered money lender or financiar therefore still can he file a case against to the borrower for cheque bounce issue?
Since both of the party do not have any written document with them for lending money and returning the same money to the lender in this situation what could be the seriousness of the case will that case will still stands or the case can not be filed?
Please reply me with your valuable suggestions with your ocean knowledge.
I will be very much thankfull to you who are all reply to me.
Thanking you in advance.

Asked on 2/19/09, 12:35 pm

3 Answers from Attorneys

J. Radhakrishnan independent Practice

0 users found helpful

0 attorneys agreed

Re: Cheque bounce issue and Notice period

Now the holder has 30 days time from the date of receipt of information of the bouncing of cheque. So if that time still is available for him, he can serve notice of demand. If he fails to send notice, no action under Sec.138 will lie. He cannot deposit the cheque once again and revive a cause of action. It is irrelevant that the payee is a registered money lender or not. While the legal position is as above, we advise the drawer of the cheque to be honest and to pay off debt instead of posing questions on this forum.

Answered on 2/19/09, 10:50 pm

Mark as helpful

Pranav Desai PD Legal & Associates

0 users found helpful

0 attorneys agreed

Re: Cheque bounce issue and Notice period

The payee can issue notice within 30 days from the date of bouncing of the cheque. So within 30 days payee can issue notice to the drawer giving him 15 days time to pay the money. Further, if you have borrowed money from not a registered money lender than you have some chance to win the case if the matter goes to the court.

Answered on 2/20/09, 12:35 pm

Mark as helpful