Person gave cheque to return money. Says no money in account.

I gave a person Rs 1,50,000 for his business 2 years back.. he neither gave interest or principle in these two years.After insisting several times, he gave me a Check of Rs 50,000(Dated 5th Aug,2015) on July month. later when i asked him before putting check collection, he says that there is no money in his account. So please guide me in this situation.. What can i do?

Answers (3)

239 votes

It seems he has only given cheque for 50,000/- and remaining amount is still pending.
Legally you can get this cheque bounced and send notice & thereafter file case against him.
But, your remaining amount of 1lac remains for which you will have to file recovery suit.
That too if you have a valid proof of giving 1.5.
If you dont have any proof, I would suggest that you tell him you want to cooperate him but want guarantee so he should issue you cheque(s) for entire 1.5 as per his convenience for a future date.
This will ensure your entire amount and thereafter if he doesn't pays you can get the cheque(s) bounced and take action against him.

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276 votes

He used to time buy from you and after he gave you check of rs. 50,000 dated 5th august 2015 its mean the cheque time is over because cheque is to be produce for encash for within 90 days if date is written on it. you can go for recovery and after that you can file negotiable instrument case but for that you have proof to that he has received money from you.

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205 votes

You need to deposit the cheque with your bank within 90 days of the date on the cheque. Let the cheque bounce. When it does, issue a demand notice to the drawer of the cheque. If he fails to repay the amount within 15 days then you may proceed against him under Section 138 Proceedings under the Negotiable Instruments Act. These are quasi-criminal proceedings and though they take some time it is an effective remedy. You could also file a recovery suit at the same time.

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