Recovery of amount of cheque dishonoured
CHEQUE IS DISHONOURED — HOW TO RECOVER THE MONEY ?
There are thousands of persons, firms and corporates, suffering from the epidemic of cheque dishonour disease in India. Everyone has the same question “how to recover the money I lost because the Bank has dishonoured the cheque of my debtor.
There are number of questions which arises while recovering the money of dishonoured cheque. The below section gives you complete guidance and according one must take action immediately by contacting their lawyer/advocate or contact us, lest you may not be able to recover the hard earned money.
Section 138 of NI Act: Dis-honour of cheque for insufficiency, etc., of funds in the accounts:
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall without prejudice to any other provisions of this Act, be punished with imprisonment for 2[“a term which may extend to two year”], or with fine which may extend to twice the amount of the cheque, or with both.
Provided that nothing contained in this section shall apply unless-
(a) The cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier.
(b) The payee or the holder induce course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer, of the cheque, 3[“within thirty days”] of the receipt of information by him from the bank regarding the return of the cheques as unpaid, and
(c) The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
Explanation: For the purpose of this section, “debt or other liability” means a legally enforceable debt or other liability].
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