Legal Question in Credit and Debt Law in India

Cheque returned insufficient funds

I hosted an event for Proprietor of company MAHE, MS. CHITHRRA at Chennai. Her firm(MAHE) flew me from and back to Mumbai on 24th Sept,07. She issued Cheque Number 876990 of amount Rupees 25,000 (TWENTY FIVE THOUSAND ONLY)DATED 7/10/2007 ISSUED FROM CURRENT ACCOUNT 3269, vide CANARA BANK, HABIBULLAH ROAD, CHENNAI . This was returned due to insufficient funds on 9th Oct 07.The cheque is signed by her and has the STAMP OF THE FIRM MAHE(mentioning her as PROPRIETOR)

Despite my repeated emails and her(CHITHRRA'S) repeated assurances that THIS WEEK, NEXT WEEK , IT SHALL BE DONE, it is NOT DONE and I am left holding the BOUNCED CHEQUE and Empty Promises and False Emails

Can I serve her a notice as she does not have the intention to pay and what will it cost?


Asked on 12/13/07, 2:27 pm

4 Answers from Attorneys
Sachin Sangare Private Practise

Re: Cheque returned insufficient funds

Firstly, within 30 days of the intimation of the cheque being dishonured, you have to serve a notice u/s 138 of the NI Act to the drawer of the cheque, clearly demanding the dishonured amount from her and also mentioning the fact that she had issued this cheque for the services you had rendered to her. You have to send such notice by RPAD & UCP. If within 15 days of the receipt of the notice by her, no demand payment is made by her than you can file a complaint u/s 138 of the NI Act, against her. But you have to file a complaint within 30 days after the expiry of the demand period of 15 days.

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Answered on 12/13/07, 10:11 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Cheque returned insufficient funds

You can file a complaint u/s. 138 of the Negotiable Instruments Act after serving a legal notice. In the notice you should clearly state that you have rendered the services of the event and this payment is in lieu with same.

For more assistance please contact personally alongwith the details.

Professional charges are applicable.

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Answered on 12/14/07, 3:33 am
G. M. Gupta gmguptaandassociates

Re: Cheque returned insufficient funds

from us it will cost rs 1100/- and you can send notice and then file a case at your place and she will pay. dont worry

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Answered on 12/15/07, 11:42 pm

Re: Cheque returned insufficient funds

Yes,you can file complaint u/s.138 N.I.Act after serving her legal notice.consult a local lawyer with details.

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Answered on 12/13/07, 8:57 pm


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