Cheque bounce and party account is freezed by bank what to do now.

818 votes

Yes you can sue the company as it is under dishonor of cheque under section 138 of negotiable instruments act and for this firstly u have to send a notice for 15 days to the company for making payment and if the company doesn't make payment then also then u will have 30 days after completion of 15 Days from service of notice to file case against the company

Advocate Saajan Rathi LawRato

811 votes

Before filing a case under Section 138 NI Act, you have to send him a legal notice. If he does not honour/ pay you after receiving the legal notice, then you can file the 138 case. You should also file a civil suit for recovery against him.

Advocate Bidit Kumar Deka LawRato

793 votes

Visit our office alongwith all documents. As detailed advice can be given only after perusal of records. Mean while it is made clear that cheque is not honoured may be due to account got freezed. You issue a statutory notice U/s 138 NI Act, through Advocate. And after expiry of waiting period file criminal complaint u/s 138. As, in case if you wait for de-freezing of account in issue the limitation period may expire, and your case will be adversely affected.

Advocate Rohini Kumar LawRato

689 votes

It is very important to understand that Section 138 covers a wide range of actions by the drawee of the cheque. "Insufficient funds" just happens to be the most common action observed in 138 cases.

Other such actions include "stop payment", "account closed", "refer to drawer",

As for the endorsement "account frozen",one would need further information as to who froze the account. Was it frozen by the act of the court in some other case? Or by the bank because of some overdraft issue with the drawee? Or was it by te drawee in order to avoid payment to payees (like yourself)?

It is only in the latter most case that you would be entitled to file a claim under section 138 NI Act.

Hope this helps!

Advocate Nikhil Sabharwal LawRato