Builder Rent chq for Transit Rent Bounced.notice served

880 votes

As per law, for dishonour of cheque, remedy under Section 138 of the Negotiable Instruments Act is available. You must issue a legal demand notice within 30 days from the date of receipt of cheque return memo. After service of notice, the builder is entitled to 15 days to make payment. If payment is not made within 15 days, cause of action arises and complaint under Section 138 must be filed within 30 days thereafter before the competent Magistrate. Apart from cheque bounce proceedings, you may also file a civil suit for recovery of the total pending transit rent of ₹6.95 lakh with interest, court fees and advocate fees. The limitation for filing a civil recovery suit is 3 years from the date the amount became due. Civil suit can be filed after notice period, independently of the cheque bounce case.

Advocate Vinod Todiwan LawRato

629 votes

After notice, Sec 138 complaint must be filed within 1 month after 15-day notice period. Civil suit limitation is 3 years. Court fees depend on state ad valorem. Advocate fees vary by court and case to case basis as per the concerned provisions of law.

Advocate Pankaj Bajaj LawRato

609 votes

On cheque dishonour of the two ₹1 lakh cheques issued towards transit rent, you have both civil and criminal remedies. A civil suit for recovery of the pending transit rent amount of ₹6.95 lakh can be filed immediately after default; there is no mandatory notice period for filing a civil suit. The limitation period is three years from the date the rent became due or from the date of cheque dishonour. Separately, proceedings under Section 138 of the Negotiable Instruments Act are maintainable, provided the statutory demand notice has been issued and the complaint is filed within one month after expiry of 15 days from receipt of the notice by the builder. This remedy is independent of the civil suit. You may issue a final legal notice demanding the entire outstanding rent with interest and costs, followed by a civil suit for recovery, interest, and damages. Court fees are payable as per the State Court Fees Act on an ad-valorem basis on ₹6.95 lakh, and advocate’s fees are separate and variable. A writ petition before the High Court is generally not maintainable against a private builder, but may lie in exceptional cases involving statutory authorities or failure of public duty. You are legally entitled to proceed forthwith with civil and cheque-dishonour actions without further delay.

Advocate Moksh Jain LawRato

601 votes

Send Legal Notice (Within 30 Days) You must send a legal demand notice to the builder within 30 days from the date you received the cheque return memo from the bank. The notice should mention: Cheque details (number, date, amount) Reason for bounce (e.g., insufficient funds) Demand payment within 15 days If the builder does not pay within 15 days, then— 2️⃣ File Criminal Complaint You can file a case under Section 138 of the Negotiable Instruments Act in the Magistrate Court within 30 days after the 15-day period ends.

Advocate Prashant Gupta LawRato

587 votes

You must file a Section 138 NI Act complaint within 30 days after the 15-day notice period ends. For the full ₹6.95L rent, a civil recovery suit is needed. Fees depend on the court's schedule and upon several other factors.

Advocate Pankaj Bajaj LawRato