Full and final settlement payment stopped. Now not giving it. Remedy?


My husband worked in a company in Meerut from 07th April 2015 to 26 th of May.The notice period period was for 15 days. After that he resigned from the company.They offered him the relieving letter too.They (the company) assured him that his full and final payment would given to him. They issued a cheque . But stopped the payment.When I contacted with them they are saying to him that he(my husband) left the company so early that their M.D has said to stop the payment. What should I do?

Answers (3)


310 votes

Madám, you can file a case under section 138 NI Act against the company. But for that you will have to first send a legal notice through a lawyer within 30 days from stop payment asking the company to pay off their dues within 15 days of the receipt of this notice. Failure of the company to pay will attract a case u/s 138 NI.

Get complete legal details of full and final settlement along with the format of the settlement letter with this Labour Service Law Guide.


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334 votes

You must get a legal notice issued within 30 days of the acknowledgement of stop payment against the company through the Director and the authroised signatory. In case they fail to pay the cheque amount within 15 days of the receipt of the said notice, you must file a complaint (within one month from the date when the fifteen days of receipt of notice expire) under section 138 read with section 141 of the Negotiable Instruments Act. Stop payment cheques are governed under the ambit of S. 138 and there are very good chances of relief. Morevoer, you can simultaneously file a summary suit for recovery of your outstanding dues.

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You need to send them a demand notice asking for the amount to be paid back within 15 days in the failure of which you will approach the Courts for cheque bounce proceedings. This demand notice has to be dispatched within 30 days from the date the cheque bounced.

The Court that you will file your case in will be the one which covers your bank, i.e. the branch where you had deposited the cheque for clearance. Once you file a cheque bounce case you will be entitled to recover up to twice the amount of the cheque.

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