Cheque Bounce Case – danger of old cheques being used

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 9 months, 3 weeks ago.

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  • #3511

    Dear Sir,

    I have issued some cheques to a Vendor against business transactions and the debt is paid through online transfer and cash but I didn’t taken cheques back.
    In present he deposit one cheque of 150000.00 on my account which got bounced and he send a legal notice to me and he claimed 129482.00 outstanding at my account which I have to pay. He is taking advantage of some cash payment receipt which is not available.
    I talked with him and agreed to pay the outstanding because in present I am on wrong side and asked him to return the bounced cheque and I issued 5 small cheques of that amount and collected the bounced cheque but still he have some more cheques which is not returned. He said he torned rest cheques.
    I knew he is going to use that cheques against me so I want to know the resolutions in this scenario.
    Please share your consultation charges and other expenses in this regard.

  • #3521

    Firstly, when you settled the matter with him, you should have taken back all the previous blank cheques given to him. Only on this condition, you should have settled the matter. And, if he had said that he had already destroyed the earlier cheques, then that fact should have been specifically recorded in the MOU which should have been signed by both parties, recording that there was no cheque outstanding with him (or that there was no other cheque outstanding with him barring the specified cheques).

    Secondly, you have said that he sent a legal notice to you for bouncing of a cheque showing outstanding balance of Rs. 129482, against which you have now given him 5 cheques. So, if there are no further transactions between the two of you, then this outstanding balance cannot exceed the above amount (except for interest, if any).

    Since a cheque bounce case can be made out only if the cheque was issued for discharge of any debt or liability, and since there is no further outstanding balance, if at all any new case is filed against you, you can take the defence of there being no debt or liability.

    Note: With regard to the last part of your question, let me tell you that there is no charge for asking publicly open questions at Tilak Marg Forum. It is absolutely free.


    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.

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