Legal Question in Banking Law in India

Check Bounce

I had given 35000 as advance to an interior decorator to do up the kitchen in my new apartment. He provided only a part of that order 2 weeks later and not as per specifications. We asked him to cancel order and return money. After about a month he handed over a check of Rs. 30000 and agreed to pay 5000 cash. The check has now bounced. Please advice what legal action can be taken and how much will it cost.

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Asked on 7/08/06, 12:23 pm

2 Answers from Attorneys
Navin Kumar Naashree Associates, Advocates

Re: Check Bounce

Dear Sir,

Indian Negotiable Instruments Act provides for penal provisions for the dishonour of checks. You first have to issue a notice under section 138 of the above said act. If the issuer of the check fails to comply with the demands raised in the notice, then you can file a complaint case iniating criminal proceedings against him. But the notice has to be issued within a time frame i.e.within 30 days of the dishonour of the check in question.The costs varies and depends on the lawyer or law firm handling the case.

Note:The above advice is based on the facts and circumtances mentioned and as per the Indian laws.It is also advised that one should always consult an attorney giving out all the relevant details.

Navin Kumar, Partner Naashree Associates, Advocates. 70, Asha Pushpa Vihar, Kaushambi Sector-14, GZB.-201010, NCR Delhi. Email: [email protected]

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Answered on 7/08/06, 12:47 pm
BANKIMCHANDRA SHAH ADVOCATE DIGVIJAYA CONSULTANCY SERVICES

Re: Check Bounce

If 30 days have not passed out for the cheque return then immediately issue a notice to the drawer of the cheque without fail and then contact a local advocate to do the further needful.

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Answered on 7/09/06, 7:31 pm


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