How to settle cheque bounce case mutually between parties

In Cheque Bounce Law
Hi , I issued a cheque of Rs 7 lac to a party which got bounced on 13 Jan 2017 due to stop payment from our side. After mutual discussion we are ready for Settlement at Rs 240,000 in 2 months but party is not giving any written confirmation or no due letter/certificate/mail. They still have our old cheque. What should be done here as they are not trust worthy. Please advice . 

Answers (4)

125 votes

You have to record the settlement in proper manner otherwise it will cause a court case to you if u want to protect urself from future dispute Contact tous ,....,it will help u wire the term nlegal

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213 votes

Even if they are hell-bent on making it to litigation , let them do as there is no need of having a separate settlement for this issue . If you are willing to pay the stipulated amount to the bearer then there is no need to worry about anything. And as far as the issue of taking the written gurantee is concerned You it depends entirely upon u but I would advise you to take each and every transaction between the parties as seriously .

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265 votes

Please confirm from the other side that they are not filing a case of cheque bouncing under Section 138 of the Negotiable Instruments Act, 1881. In case there is any written communication with regard to settlement talks that were exchanged between the parties, kindly put in on record by way of a Demand Letter asking them to return the cheque issued previously by you in lieu of the settlement talks. Even if they do not comply, at least your bonafide intention will be on record.

80 votes

On the preliminary reading let me first make you aware of the fact that you need to get that cheque from the other party or with details of the cheque get it cancelled from your home branch. Since, the law on cheque bounce cases gives liberty to the payee to re- apply the cheque in the bank for payment and if the cheque bounces again then a new cause of action arises in law which would give them the right to appraoch the appropriate court for relief. So, do consult with valid papers for advice

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