Legal Question in Credit and Debt Law in India

cheque bouce case under NI Act

Dear sir

I have supplied the material to a company in Bhubaneswar. My office was at Visakhapatnam when the supplies were made. The company in Bhubaneswar issued two cheques. Now we closed the business and i am shifted to Hyderabad.

Both the cheques got bounces last week. Please clarify the following ;

A) Can i send the notice from Hyderabad.

B) If the Bhubaneswar company fails to pay , can i file the case under negotiable instrument act in hyderabad itself or i have to file in Visakhapatnam.

C) Can i send the notice personally or i have to send the notice through lawer only.

D) If i file the case under Negotiable instrument act , how many days it will take to punish the defaulter , if i have all the data to proove the case.

E) Hundreds of Emails were exhanged inbetween for this particular transaction . Can i show these email messagesas ' part of proofs '

F) I have two cheques which were bounced due to ' lack of sufficient funds '. Can i file the cases in two places.

Please clarify at the earliest

Regards

Srihari P


Asked on 9/24/08, 5:09 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: cheque bouce case under NI Act

(1) You can file complaint either in Bhubaneswar or in Visakhapatnam; I am not sure about Hydrabad because no part of the transaction seem to have taken place there.

(2) You can surely send the notice from Hyderabad or any place you like.

(3) You do not need a lawyer to send demand notice; just be careful that the notice is sent before expiry of time fixed in the N.I. Act.

(4) You can use the data available with you. However, burden is upon to prove that the cheque was not represented by a lawful consideration. You will not need to prove exchange of correspondence about this transaction; The cheque, alongwith your statement about the transaction, and at best a copy of the bill, if any, should be sufficient evidence on your part.

(5) The total time that may be taken in court proceedings cannot be ascertained. However, the first hearing takes place almost immediately after filing of complaint; the court will record your statement which is also called as "PE"; and thereafter issue "summons" to the drawer of the cheque/accused.

(6) It will be better for you to file the case only at one place to save time and money.

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Answered on 9/24/08, 7:49 am
SHIVA SHANKAR REDDY M/S S&S LAW FIRM

Re: cheque bouce case under NI Act

(1) You can file complaint either in Bhubaneswar or in Visakhapatnam; but since you have closed your business and moved to Hyderabad you can file the same in here in you present the cheque through a bank in Hyderabad where you have and account.

(2) You can surely send the notice from Hyderabad or any place you like.

(3) As far as filing of the case is that you need to file the same within 30 days from date of issue of notice else you will lose legal remedy under N.I.Act.

(4) WHAT IS THE MOST IMPORTANT PART OF N.I.ACT IS THAT THERE SHOULD BE A LEGALLY ENFORCEABLE DEBT.

(5) The total time is not the primary criteria as you have rightful claim than better be patient than in hurry .

(6) It will be better for you to file the case only at one place to save time and money else as per N.I.Act you also have to be present at every date of hearing which i feel you should think.

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Answered on 9/24/08, 11:56 am


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