Start Up investment at Risk

Dear Client,
In the given scenario, instead of waiting for a return on investment which is almost uncertain you should consider legal recourse. When a person or a company issues a post-dated cheque against a promise or against any refund of money refundable by him or them and in the absence of any agreement, the cheque receiver holding the said cheque is free to present 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 post-dated cheque leaf, voluntarily 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 cheque, the cheque's drawer will be held accused under Sec. 138 of N I Act, 1938. Even, a stop payment instruction to the Bank from the drawer of the cheque which was issued towards the discharge of any contractual obligation would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque would face legal consequences under Section 138 of the N I Act, 1938. A legal notice has to be 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. The holder of the bounced cheque must file the complaint against the drawer of the cheque before the Court of Magistrate within 30 days of the expiry of 15 days of issuing the cheque bounce notice to the drawer of the cheque.