My friend borrowed ₹10 lakhs from me and promised to repay by December 2016. He’s facing some difficulty now and asked for more time. I’m planning to get a post-dated cheque from him as a guarantee. What steps should I take to ensure legal action if the cheque bounces? Also, under what circumstances would the dishonor of this cheque become a legal offense?

Apni Law
Apni Law
Law Forum › Category: Cheque Bounce › My friend borrowed ₹10 lakhs from me and promised to repay by December 2016. He’s facing some difficulty now and asked for more time. I’m planning to get a post-dated cheque from him as a guarantee. What steps should I take to ensure legal action if the cheque bounces? Also, under what circumstances would the dishonor of this cheque become a legal offense?
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Apni Law Staff asked 1 year ago

My friend borrowed ₹10 lakhs from me and promised to repay by December 2016. He’s facing some difficulty now and asked for more time. I’m planning to get a post-dated cheque from him as a guarantee. What steps should I take to ensure legal action if the cheque bounces? Also, under what circumstances would the dishonor of this cheque become a legal offense?

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Apni Law Staff answered 1 year ago

To ensure legal action, file a complaint with the police and lodge an FIR under Section 138 of the Negotiable Instruments Act, 1881. Dishonoring a cheque becomes a legal offense if it is issued for a debt due and is presented for payment within 30 days of issuance, and it is dishonored for insufficient funds or any other reason.

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