Legal Question in Credit and Debt Law in India
Notice under Negotiableinstruments act
Dear sir
One cheque got returned ' due to the lakh of funds ' . The cheque was issued by our customer against the supply of material. Total amount due was Rs.35.72 Lakhs. The cheque amount is Rs.30.00 Lakhs. We have issued the advocate's notice as per the NI Act. In the advocate's notice , our advocate mentioned as ' Rs.30.00 cheque was issued by u against the totl amount due was about Rs.36.00 lakhs'.
Will it make the notice valid. It was mentioned that the total amount was rounded off to nearst lakhs. In the noticed we demanded only the cheque amount .i.e 30 lakhs. Will it effect the total case under NI Act
4 Answers from Attorneys
Re: Notice under Negotiableinstruments act
one should be very careful while issuing notice. Section 138 mostly depends upon technicality and the burden of proof lies on you rebutt. you can only demand the cheque amount not the total amount due. advise your counsel to project the case very concisely without giving much scope to typographical errors.
Re: Notice under Negotiableinstruments act
No it will not affect the case. In the notice the basic thing done is demand of amount for which the cheque has bounced. If that is correct then it should not be a cause of worry, and especially if the respondent has not paid the amount in the notice period.
Re: Notice under Negotiableinstruments act
You may pursue your remedy through your lawyer.
Re: Notice under Negotiableinstruments act
It is not to possible to collect more money other than the cheque amount in NI Act.You may collect the same by filling a suit under summery procedure as stated in the civil procedure code .Please contact a good civil lawyer or you may contact me in my given address.
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