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Chq returned - Payment advice not recd


12-Jan-2026 (In Recovery Law)
Hi I had entered into an settlement agreement with a company for recovery of my dues under which he acknowledged it as a legally enforceable debt and I had issued 3 chqs for the recoverable amount but when I banked the first chq it got returned with reason mentioned as payment advice not received...I want to understand my legal options available as now I have had serious doubts on his intent to pay me back .
Answers (5)

Answer #1
763 votes
Your immediate remedy is under Section 138 of the Negotiable Instruments Act. You must issue a statutory legal demand notice to the drawer within 30 days from the date of receiving the return memo, demanding the cheque amount within 15 days. If he fails to pay within 15 days of receipt of notice, you can file a criminal complaint under Section 138 NI Act within the next 30 days before the competent Magistrate.
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Advocate Madhvi Chopra

Adv. Madhvi Chopra

LawRato Delhi | 50+ Answers
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Answer #2
588 votes
Hi there, at first you need to send them a legal notice providing them a 15 days period to pay you the whole amount. If the same is not paid you can file a criminal case against them u/s 138 Ni act. However, in order to provide you with appropriate advice I'll need to verify T&C mentioned in your settlement agreement. It's advisable to contact me and provide requisite details to assist you better.
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Advocate Ishan Parashar

Adv. Ishan Parashar

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Answer #3
817 votes
you must send a legal Notice first to pay the amount under 138 of negotiable Instrument act. after 15 days of legal notice if he does not pay you can file a cheque bounce case . the process is very simple .
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Advocate Mukesh Kumar Sah

Adv. Mukesh Kumar Sah

LawRatoDelhi | 200+ Answers
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Answer #4
567 votes
This is a contempt of court n u need to file application for the same ! N u need to hire an advocate to issue legal demand notice too followed by 138 case ! Kindly be in touch to understand the legalities
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Advocate D. Khan

Adv. D. Khan

LawRatoDelhi | 1000+ Answers
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Answer #5
650 votes
You can always initiate a case under section 138 NI Act and ultimately get your money back along with compensations. But firstly you need to compulsorily issue the opposite party a legal notice to either pay your money back or face legal action which will be at their own risk.
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Advocate Jitender Singh

Adv. Jitender Singh

LawRatoDelhi | 1000+ Answers
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