Collecting cheque return charges when cheque dishonoured

Tilak Marg Forum for Legal Questions Forums Criminal Law Collecting cheque return charges when cheque dishonoured

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    • #314
      Anonymous
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      Can I as a distributor collect cheque return charges from retailers above what my bank charges me? i.e. for inconvenience, delay and expenses incurred due to dishonour?

    • #315

      This is generally an issue between you (as a distributor) and your retailers, subject to any agreement between you. There is no specific mention of it in Section 138 of the Negotiable Instruments Act.

      Generally speaking, you can claim all genuine expenses from your opposite party when they are due to the fault of the opposite party. If you are sending a notice for filing a case under Section 138 for cheque dishonour, you can mention about such expenses incurred by you (i.e., cheque return charges collected by bank).
           


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