money recovery suit
2 months ago
My father had borrowed rupees 50,000 for person A before 6 years. in 2021 Mr A threatened my parents and received a cheque of rupees 3 lakhs and bounced it and sent us notice for rupees 5 lakhs in 2022. yesterday my father and mother received summons without plaint copy to appear in court in March for money recovery suit. there is documentation on amount received, as per my fathers belief, the Mr A has filed suit only with the cheque bounced, kindly help us by advising further actions required
A.Dear Client,
If a person issues a cheque against a promise or any refundable money, and the cheque is dishonored for any reason upon presentation, the holder of the cheque can file a criminal suit against the drawer under Section 138 of the Negotiable Instruments Act, 1938. This must be done within three months from the date of presenting the cheque to the bank. A cheque signed and handed over by the drawer for a specific payment is presumed under Section 139 of the N.I. Act. The Supreme Court, in the case of Sripati Singh v. State of Jharkhand (2021), emphasized that a cheque issued as security in a financial transaction can still be presented, and its dishonor invokes the consequences of Section 138 and other provisions of the N.I. Act.
Following dishonor, a legal notice must be served on the drawer within 30 days, providing an opportunity for repayment. The cause of action arises when the drawer fails to make payment within 15 days of receiving the notice. To navigate the legal process, it is recommended to consult with an advocate for guidance and steps. If expert assistance is needed, the legal team can be contacted with details of the case.
If a person issues a cheque against a promise or any refundable money, and the cheque is dishonored for any reason upon presentation, the holder of the cheque can file a criminal suit against the drawer under Section 138 of the Negotiable Instruments Act, 1938. This must be done within three months from the date of presenting the cheque to the bank. A cheque signed and handed over by the drawer for a specific payment is presumed under Section 139 of the N.I. Act. The Supreme Court, in the case of Sripati Singh v. State of Jharkhand (2021), emphasized that a cheque issued as security in a financial transaction can still be presented, and its dishonor invokes the consequences of Section 138 and other provisions of the N.I. Act.
Following dishonor, a legal notice must be served on the drawer within 30 days, providing an opportunity for repayment. The cause of action arises when the drawer fails to make payment within 15 days of receiving the notice. To navigate the legal process, it is recommended to consult with an advocate for guidance and steps. If expert assistance is needed, the legal team can be contacted with details of the case.
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A.Dear Client,
When a person issues a cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque presents the same for encashment on any date and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. A cheque for a specific amount signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the said cheque, the drawer of the cheque will be held accused under Sec. 138 of N I Act, 1938. The Supreme Court in the case of Sripati Singh v. State of Jharkhand, 2021 SCC OnLine SC 1002, decided on 28.10.2021, held that a cheque issued as security under a financial transaction cannot be considered a worthless piece of paper under every circumstance and that there cannot be a hard and fast rule that a cheque which is issued as security can never be presented by the drawee of the cheque. If in a financial transaction, an amount is advanced and the receiver of the amount agrees to repay the amount in a specified timeframe and issues a cheque as security to secure such repayment; and if the said amount is not repaid in any other form before the due date or if there is no other understanding or agreement between the parties to defer the payment of the amount, the cheque which is issued as security would mature for presentation and the drawee of the cheque would be entitled to present the same. On such presentation, if the cheque is dishonored, the consequences contemplated under Section 138 and the other provisions of the N.I. Act would flow. A legal notice is served on the drawer of the cheque within 30 days of the instance of dishonor. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque irrespective of the reason behind the dishonor of the cheque and a chance to repay. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. So, in view of the aforesaid averments of Apex Court, you need to consult with an Advocate for guidance and steps. In case you need our expert service in this regard, you may contact our legal team with the details of the case.
When a person issues a cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque presents the same for encashment on any date and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. A cheque for a specific amount signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the said cheque, the drawer of the cheque will be held accused under Sec. 138 of N I Act, 1938. The Supreme Court in the case of Sripati Singh v. State of Jharkhand, 2021 SCC OnLine SC 1002, decided on 28.10.2021, held that a cheque issued as security under a financial transaction cannot be considered a worthless piece of paper under every circumstance and that there cannot be a hard and fast rule that a cheque which is issued as security can never be presented by the drawee of the cheque. If in a financial transaction, an amount is advanced and the receiver of the amount agrees to repay the amount in a specified timeframe and issues a cheque as security to secure such repayment; and if the said amount is not repaid in any other form before the due date or if there is no other understanding or agreement between the parties to defer the payment of the amount, the cheque which is issued as security would mature for presentation and the drawee of the cheque would be entitled to present the same. On such presentation, if the cheque is dishonored, the consequences contemplated under Section 138 and the other provisions of the N.I. Act would flow. A legal notice is served on the drawer of the cheque within 30 days of the instance of dishonor. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque irrespective of the reason behind the dishonor of the cheque and a chance to repay. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. So, in view of the aforesaid averments of Apex Court, you need to consult with an Advocate for guidance and steps. In case you need our expert service in this regard, you may contact our legal team with the details of the case.
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