Legal Question in Banking Law in India

cheque bounce

I received a cheque of Rs.10000/- from one of my debtor dated 01.01.2008 (Assuming) and the same was presented in the bank and was dishonoured because of insufficient of balance in the drawer account. we had intimated him about the dishonour of cheque (orally). Now he is not ready to pay the amount.

we had not given him a required notice of Cheque bounce and also as of now the Cheque Validity is also over.

1) NOW, can i file a Cheques bounce case on Drawer?

2) As the validity of the cheque is over we can not present the cheque again in bank and the cheque was also mutilated, is there any other way to make the drawer charge?

please suggest wat can i do to get back my money.


Asked on 9/04/08, 3:10 pm

5 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: cheque bounce

No remedy by way of prosecution under Sec.138 N.I.Act. Give notice by RPAD demanding the amount and file a summary suit under Or.37 Rule 1 of the Code of civil procedure, within three years from the return of the cheque.

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Answered on 9/06/08, 9:28 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: cheque bounce

(a) You cannot institute criminal proceedings under Negotiable Instruments Act because you did not serve a written demand notice upon the drawer after cheque was bounced. However, you are not remediless.

(b) You should now issue a notice of demand upon him and if he still fails to pay, you are entitled to file a suit for recovery (civil case) before the civil court of your area. It should be a "Summary" procedure suit under Order XXXVII of CPC - this remedy is expeditious, faster than the ordinary civil suit.

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Answered on 9/05/08, 7:05 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: cheque bounce

You can't file a complaint u/s 138 NI Act as procedure and limitation is very strict. However go for civil remedy by filing a suit for recovery of money.

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Answered on 9/09/08, 1:41 am
Satyajit Patra Satyajit Patra

Re: cheque bounce

Yes, the remedy could be available by filing a recovery suit against the drawer of the cheque.

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Answered on 9/04/08, 4:17 pm
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: cheque bounce

I think you have lost the remedy u/s 138 of NI Act . Anyway that is the criminal case and no proceedings for receovery but because of the fear in the mind people compromise the matter . You will have to approach to Civil Court for reovering the said amount

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Answered on 9/05/08, 12:01 am


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