Legal Question in Banking Law in India

cheque bounce

I gave a cheque of Rs 30,000/- dated 03/10/08 to tenant (part of advance amount & where Rs70,000/- cheque is issued 05/09/08 and already encashed by tenant)(Total Amount Rs 1,20,000). I also told the person not to present it till I will make available sufficient funds in it.

But I came to know that tenant has submitted it and the cheque has bounced.

Today 17/10/08 i paid the remaining amount Rs45,000/-(cash in presence of witness and a plain paper receipt and he also gave one key of the house) and he told he return the bounced cheque after handing over the other house key, where Rs 5000/- will be paid by me.

I wish to know, can he go to court even after me paying the full amount as he has not returned the cheque. what are the steps, I must take in case -- Should I approach the Police?

please let me know

regards

Bangalore


Asked on 10/17/08, 4:54 am

4 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: cheque bounce

No, you need not to approach the police. you should demand the return of bounced cheque by writing him a polite letter, per registered post, reminding him that you had made the payment against that cheque for which you have the receipt; even he does not, and still go ahead with presentation of the cheque, you should (a) stop payment; and (b) when you receive a notice of demand, before he starts NIA proceedings, send him your reply and a copy of the letter which you will be writing now.

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Answered on 10/17/08, 7:34 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: cheque bounce

You pursue with him to return the cheque and if he sends notice reply stating above facts.

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Answered on 10/17/08, 11:23 am
J. Radhakrishnan independent Practice

Re: cheque bounce

issue him notice setting out the true facts and requesting him to return the cheque for which payment has already been made in cash. You also issue a notice to Bank to stop payment. Anyhow, better consult a local lawyer and proceed.

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Answered on 10/19/08, 9:36 pm
Nasir Butt Nasir Law Associates

Re: cheque bounce

Where you have paid amount in cash being full and final payment and obtained its receipt, don�t worry and need not to go to police. Even you feel some danger, you may write letter either yourself or through your attorney stating all the true facts and requesting to refrain any act which is illegal and against the facts.

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Answered on 11/05/08, 9:12 am


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