Cheque Bounce – 5 cheques given as security – payment not made

[Anand Das]

1. Five (15L,15L,25L,25L,20L) cheques along with a patch of land was given as security against bricks worth Rs.1 crore vide 2 agreements. No repayment done, when presented one cheque amounting to Rs. 15L, it got bounced. Shall i present all the cheques to bring my whole claim under Sec. 138 of NI Act?

[Dr. Ashok Dhamija]

If you succeed in your cheque bounce case, then normally you are awarded compensation corresponding to the cheque amount. This obviates the need to file a civil case to recover the money.

Therefore, if all the five cheques are in their validity period and you feel that the party is not paying you the amount that is due to you, and also if there is no restriction in your agreement about when you can present those cheques to the bank, then you can deposit all those cheques in the bank so that you can pursue those cheque bounce cases and recover the full amount by way of compensation in the event of the cheques being dishonoured.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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