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Debtor issued a cheque and I gave it to my creditor and it bounced.


09-Oct-2023 (In Cheque Bounce Law)

If somebody issues's cheque to me and I forwarded that cheque to my creditor and if the cheque is dishonoured. What actions can I take and can I send a notice to my debtor? Will I be in anyway liable to my creditor?

Answers (1)

Answer #1
267 votes

You are not liable for the bounced cheque to your creditor, however you would still need to settle those dues. As far as the drawer of the cheque is concerned, a demand notice will need to be issued and the appropriate proceedings taken out, though it will have to be in the name of the payee of the cheque.

You could have your creditor sign a power of attorney authorizing you to file the cheque bounce case.

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