LAW RESOURCE INDIA

Only first notice on bounced cheque valid

Posted in UNCATEGORIZED by NNLRJ INDIA on January 18, 2010

BS Reporter / New Delhi January 18, 2010, 0:34 IST

The Supreme Court has ruled in the case of Tameshwar Vaishanav vs Ramvishal Gupta that if the payee or the holder of the cheque does not file a complaint of dishonour within the prescribed time, he cannot issue a second notice and then file a complaint again.

Notice with respect to a cheque can be issued only once. The deadline or limitation starts from the date of the first notice. Later notices do not matter, the judgement stated while interpreting Sections 138 and 142 of the Negotiable Instruments Act. According to the Act, the notice of dishonour of a cheque due to insufficiency in the account should be sent to the drawer of the cheque within 30 days of the dishonour. If the drawer of the cheque does not pay within 15 days thereafter, the holder of the cheque may file a criminal complaint.

http://www.business-standard.com/india/news/only-first-noticebounced-cheque-valid/382925/

4 Responses

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  1. Aalok said, on October 26, 2010 at 18:43

    Hello,

    I’ve been working the company. the didint pay me the salary. i gave a months notice period & left the company. Now the director is not paying me the outstanding salary. Just two days back he paid me few part amount & cheque got bounced. now which steps shall i take to recover outstanding amount. I’ve still not submitted the ID card as its the only proof that i’ve worked there. The company hasn’t even signed off on my resignation letter.

  2. Aalok said, on October 26, 2010 at 18:43

    Hello,

    I’ve been working the company Pvt Ltd. the didint pay me the salary. i gave a months notice period & left the company. Now the director is not paying me the outstanding salary. Just two days back he paid me few part amount & cheque got bounced. now which steps shall i take to recover outstanding amount. I’ve still not submitted the ID card as its the only proof that i’ve worked there. The company hasn’t even signed off on my resignation letter.


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