Legal Question in Banking Law in India

Cheque Bouncing

I left my job in Jan-2006 and my employer issued me cheque for the final settlement of my dues. This cheque got bounced on 24th January. Now they re-issued the cheques worth Rs 33,000 (dated 16th June'2006) along with compensation, which again got bounced on te same day. Now what is the procedure to get my money back? There is no response from them and they are not attending any calls now.

Is it really beneficial taking them to court? How risky is this? Also guide me what to do next now and which lawnyer should i approach in Chandigarh and how much will he charge?


Asked on 7/13/06, 1:22 am

2 Answers from Attorneys
Navin Kumar Naashree Associates, Advocates

Re: Cheque Bouncing

Dear Sir,

You may file a criminal complaint case against your employer under section 138 of Negotiable Instruments Act. This section provides for a punishment for a term extending to two years. But before filing of a complaint, you are required to issue a demand notice, within 30 days of the dishonour of the cheque. This is an effective way to recover the cheque amount. Alternatively, you can file a summary suit for recovery, based on the same cheque against your employer under order 37 of the Code of Civil Procedure. You have two options to go with and both can also be proceeded simultaneously. Under the facts and circumstances stated to us, no risk is involved.Now, you are guided to issue a notice of demand addressed to your employer. This is an statutotary requirement.

Navin Kumar, Partner, Nashree Associates, Advocates

Litigation cell: 6, Ist Floor, Bengali Market, New Delhi-110001.

Email:[email protected]

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Answered on 7/13/06, 2:12 am
rameswaram ramanathan Self

Re: Cheque Bouncing

The person who issued the bounced cheque can be sued for the money value as well as for the damages caused to the beneficiary in the concerned Munsif Court or Sub-Court.

There need be no fear for filing the case

ramanathan

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Answered on 7/14/06, 6:45 am


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