1. #1

    Can we take legal action if Cheque of a customer has bounced?

    We are wholesale dealer of barcode and bill printing paper roll. Recently one of the customers ordered for the bulk amount barcode. And we sent the delivery of the same. He has paid us through cheques. Now this cheques has been bounced and even the customer is not responding properly. Can we file a case against him on this?

  2. #2
    Labournet Law Consultancy Array
    Join Date
    Oct 2012
    2nd Floor, Patel Complex, Basin Road, Ernakulam, Kerala

    Re: Can we take legal action if Cheque of a customer has bounced?

    Yes you can file as case. You can file a case under Section 138 of the Negotiable instrument Act. This is another type of criminal case.This Act is especially for bouncing of the cheque. Before filing a case at first you have to sent a lawyer notice directing him to pay the amount failing which a case will be filed under section 138 of the negotiable instrument Act. After sending the lawyer notice you have to file a case with in 45 days from the date of sending the lawyer notice. Above said is the basic procedure to be followed.

    If you do not follow the above said procedure then you will be in trouble and your case will be dismissed.

    In my opinion who should file the said case with the help of a good lawyer.
    LabourNET Law Consultancy
    Leading Labour law Compliance Consultancy in Kerala having PAN India presence.

  3. #3
    G.one Array
    Join Date
    Jul 2012

    Re: Can we take legal action if Cheque of a customer has bounced?

    Yes, definately you have the right to take a legal action against him as per the section 138-A of Negotiable Instruments Act, 1881. But before that you must talk with your customer and know the reason behind check bouncing and if he is ready to pay the amount or not. Aftdr that You need to Hire an advocate for further action, issue a legal notice within 30 days from date of bouncing of cheque and demand him to pay the due amount within 15 days from the date of issue. If he fails to pay the amount in the said days, then register a case against him as per the above mentioned act. For claiming the total amount from that party in the court, you need to calculate all the cost like Sales amount, Interest amount, bank charges due to bouncing of cheques and any other expenses related to that transactions.

  4. #4
    venki Array
    Join Date
    Jan 2013

    Re: Can we take legal action if Cheque of a customer has bounced?

    Yes you can file case under section of 138 of the negotiable instrument ACT

    this is another type of criminal case

    this is ACT is specially for bouncing the cheque only

    before file case send a lawyer notice to him and has to pay the failure money if he fails you can put a case on him as per the 138-A negotiable ACT,1881

    after sending lawyer he will not respond you has to wait 45 days for case file on him

    best of luck

  5. #5
    Param Array
    Join Date
    Sep 2012

    Re: Can we take legal action if Cheque of a customer has bounced?

    Dear Friend!

    Of course you can file case against him for this if he does not give proper response. But you may ask at least "why cheque has been bounced" for this reason. If he don't provide the proper reason and threaten you to not pay the bill. So definitely you must take action against him and also tell them I am going to take action for this and lodge FIR against you as a Fraud Case. So that he can pay failure cheque payment to fear of. Because this case is also another case like a criminal cases.

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