Free Legal Advice - cheque bounce
Posted by: bhawna negi
Posted on: 2018-09-12
Bouncing of Cheque alone doesn't attract section 138 of NI, but if the amount is for payment of dues through Cheque, then it would attract Section 138 of NI. It would not affect whether the cheque is a security (security is also a liability to secure) or for payment of dues. 138 case is maintainable if there is any legal enforceable debt. Within 30 days, a legal notice would be sent. A time period of 15 days exists to make payments. Thereafter if one doesn't pay, cheque bounce case under Section 138 of the Negotiable Instruments Act will be attracted and a suit can be maintained.
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