Legal Question in Banking Law in India

gemini industries&imaging; limited md monohar prasad indian overseas bank in 34 all staff v.r.s cheque funds insufficient legalaction plise hel me

Asked on 2/02/16, 6:32 pm

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP


Dear Sir / Madam,

You should issue a letter to the Company stating that the Voluntary Retirement Service (VRS) settlement cheque has been dishonoured, with a request to pay and settle your dues within 7 (seven) days. Further, you should send a notice under Section 138 of the Negotiable Instruments Act, 1938 to the Managing Director of the Company intimating him of the cheque dishonour and to pay and settle your dues immediately.


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Answered on 2/02/16, 6:38 pm
Vivek Mapara Vivek N. Mapara

Once the Cheque is Dishonored, then start 138 proceedings, before expiry of limitation period.

However, i would advise you that issue a notice under section 433 of the Companies Act, that the cheque is bounced, and that the company is unable to met its debt / obligation and hence is liable to be wound up.

If you go to NI Court, then it will take lot of time and ultimate recovery will be years late. However, with winding up proceedings your recovery will be real quick. Winding up proceedings will have the impact on the very existence and survival of the company.The winding up proceedings will be most effective and very speedy. All 34 should file it.

Feel free to contact should you have any questions.

Vivek N Mapara

[email protected]

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Answered on 2/04/16, 12:46 am

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