dishonour of cheque.

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RANJAN MODAK

RANJAN MODAK (Querist)
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03 August 2010 I have got my cheque dishonoured few months back. It was issued by a Company. What can I do now?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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03 August 2010 On the dishonour of cheque by the company you can file a suit for recovery of the amount under Order XXXVII of CPC. As you have stated that cheques were dishonoured few months back and you have issued no notice to the company bringing to their knowledge the dishonour of cheques and the life of the cheque is still valid which is usually six months from the date of issue. You please present the cheque again and on receipt of the information about the dishonour of the cheque you immediately issue notice within 30 days from the receipt of the information of dishonour of cheque to the company. If the company does not pay the amount within 30 days from the receipt of the notice, you can file complaint under Section 138 of the Negotiatble Instrument Act. The said complaint is to be filed within one month on the expiry of 30 days period of notice.

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