What to do if a legal notice has been received for cheque bounce
26-Oct-2023 (In Cheque Bounce Law)
I am Govt employee. In 2014, I had guarantor of another Govt employees loan of Rs 2 Lakhs. He was irregular to payment of installments. So the leasing Pvt Ltd Co produce the guarantor cheque of Rs 93,500/- in Apr 2017. The cheque was bounced and they issued me legal notice. What I do. I had always speak that leasing Co with the borrower and Co rep satisfy that conversation.
You have to reply to the notice because silence shows that you are liable that....and also contest the matter as you are not liable for it.
As per the law the garuntor is liable in the case of cheque bounce but on the basis of facts you can contest the matter.
As per the law the garuntor is liable in the case of cheque bounce but on the basis of facts you can contest the matter.
You will have to give a reply to the legal notice through an advocate stating therein why you should not be implicated in such dishonour of cheque. It is the first step in case you wish to build your case further.
Sir,
I am to inform you that you should consult local advocate and reply the legal notice received by you disclosing all the facts and circumstance so that Leasing co.may not take further action .
Thanking you,
yours,
Ajitkumar
Advocate
I am to inform you that you should consult local advocate and reply the legal notice received by you disclosing all the facts and circumstance so that Leasing co.may not take further action .
Thanking you,
yours,
Ajitkumar
Advocate
A case of dishonor of cheque lies under the section 138 of negotiable instruments act, under that the person issuing a cheque which gets bounced, is held for a criminal liability.
now coming to a guarantor, issuing a cheque, if he/she issues the same in discharge of ‘debt' and hence is criminally liable when the same is dishonored.
thus, coming to your case, either you would have to get that person pay the amount,
or you would have to pay the same, you being his guarantor, would be personally responsible for that, and if your cheque gets bounce you too will be held liable under the same section 138 of the NI act.
To escape that,
1. either prove that you are not liable for him not paying certain amount or for his BOUNCED CHEQUES.
2. Prove you are responsible only to a certain amount only and not the whole, that too if and only if the company has tried all other methods to seek the money back ( including this complaint ).
now coming to a guarantor, issuing a cheque, if he/she issues the same in discharge of ‘debt' and hence is criminally liable when the same is dishonored.
thus, coming to your case, either you would have to get that person pay the amount,
or you would have to pay the same, you being his guarantor, would be personally responsible for that, and if your cheque gets bounce you too will be held liable under the same section 138 of the NI act.
To escape that,
1. either prove that you are not liable for him not paying certain amount or for his BOUNCED CHEQUES.
2. Prove you are responsible only to a certain amount only and not the whole, that too if and only if the company has tried all other methods to seek the money back ( including this complaint ).
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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