Legal Question in Banking Law in India

cheque bounce

a party from pune, india gave me two cheques worth 17,500 & 49,500 respectively and the 17,500 recently has bounced on 28 october and i recieved it today from my bank. now what is the procedure to take the party to law and how effective it is.. .. i also fear that if i take it to the law, even if my payment has to come .. may not come in cash as he would know that i have gone to the court.. is it really beneficial taking them to court.. how risky is this.. also guide me what to do next now and which lawnyer should i approach in chembur, mumbai and how much will he charge..?


Asked on 11/09/05, 2:32 pm

1 Answer from Attorneys
Vivek Anand M/S.VIVEK ASSOCIATES

Re: cheque bounce

You need to issue a legal notice to the drawer of the cheque within 30 Days from the date of dis-honour endorsement, calling upon the party to pay the cheue amount within 15 days from the date of receipt of notice, and if at the end of 15 days he does not pay the amount, then you have to file a Complaint before the Magistrate, u/s. 138 of the NI Act, or you have the option to file a suit for recovery.

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Answered on 11/09/05, 11:19 pm


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