Legal Question in Credit and Debt Law in India
Penalties - Negotiable instrument act
Dear sir
One cheque given by one debtor got returned. The cheque amout was Rs.20 lakhs. We proceeded under NI Act. Due to this defaultincurred lot of loss by way o ove due interest etc. Atlast we sold off one property at distress price and paid off our liability. This was happened due to this cheque bounce. Can we get any compensation under NI Act , if we proove the loss incurred due to this act. Can we request the cout to sanction compensation . I understand that the cout can impose the penalty upto the 200% of the chequevalu. Is it true? Is this penalty is to give to the complainant or gs to the government? If so how can we get our amount with compensation ? Please advice
4 Answers from Attorneys
Re: Penalties - Negotiable instrument act
Penalities under NI ACT are seperate.
In case you want to claim loss you will have to file a seperate civil suit.
Re: Penalties - Negotiable instrument act
You may also consider filing a civil suit for recovery of the amount in addition to the compensation that may be awarded under N.I. Act.
both the remedies may be pursued simultaneously.
Re: Penalties - Negotiable instrument act
You may also consider filing a civil suit for recovery of the amount in addition to the compensation that may be awarded under N.I. Act.
both the remedies may be pursued simultaneously.
Re: Penalties - Negotiable instrument act
There is provision in Ni Act to get the compensation you can get it so by filling a money suit .
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