Delay in returning money borrowed 4 years ago

695 votes

My advice is please send a letter to the borrower immediately, informing him that you have deposited the cheque. If the cheque is cleared, then you problem will end. However, if the Bank returns the cheque as dishonoured, then please collect the Bank endorsement and approach a lawyer. Please remember, time is of essence for the Negotiable Instruments Act. The Act lays down the following provisions, amongst others: (1) The cheque given for a debt should be deposited with the bank within 6 months from the date when it was drawn, or within its validity period ---> since cheque was issued in March 2016 and you have deposited it on April 19, 2016 - this is fine. (2) When the Bank gives you an endorsement that the cheque has been dishonoured, i.e., unpaid, then you have to send a legal notice to the borrower WITHIN 30 DAYS FROM RECEIVING THIS ENDORSEMENT and (3) After sending the legal notice, the borrower has 15 DAYS to make the payment. If he still does not pay, then you can file a case under Section 138 of the Act. However you can file this case only 15 DAYS AFTER SENDING THE LEGAL NOTICE. Hence, I advise you to follow-up with the Bank first and see if the cheque is cashed or not and then proceed accordingly. My advice is based only on the limited information provided by you in your query. It is not my final legal opinion.

LawRato LawRato

980 votes

Dear Querist, You are lucky you got the cheque and you deposited. Remember any suit for recovery proceedings limitation time is 3 years. In the event, if the cheque returns as "insufficient funds" you can issue a legal notice through an Advocate within 30 days from the receipt of the Bankers memo which will come as "insufficient funds". In that legal notice you have to give him time of 15 days to return the money due under the cheque, if he does not pay, then you can initiate 138 NI proceedings for recovery of money. Pratap, Advocate.

Advocate Pratap Kumar LawRato

800 votes

you have two options to recovery the said amount. one is after dishounring the cheque with in a 30 days you have issue legal notice to the opposite party, after the service of notice you have to file criminal complaint before the jurisdictional magistrate. and another one is that after issuing notice you can file money suit for recover of said amount but here you have to pay court fee. if you want more details you can contact me through personally.

Advocate Muralidhara P LawRato