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On March 18 2020 i was terminated from my Job before covid lock down. I had taken advance loan from my employer and he insisted me to pay back. I gave him a posted cheque from my wife’s account for 1 lakh for date 20.06.2020 thinking some how i will arrange, but due to lock down things went worse and till now i do not have a stable job. On 19.06.2020 I mailed my employer asking him not to present the cheque and mentioned it that i will clear it in 3 months time. But they have presented the cheque and I also did a stop payment of the cheque on 19.06.2020. I need to know what are the consequences faced due to this.
Question
On March 18 2020 i was terminated from my Job before covid lock down. I had taken advance loan from my employer and he insisted me to pay back. I gave him a posted cheque from my wife’s account for 1 lakh for date 20.06.2020 thinking some how i will arrange, but due to lock down things went worse and till now i do not have a stable job. On 19.06.2020 I mailed my employer asking him not to present the cheque and mentioned it that i will clear it in 3 months time. But they have presented the cheque and I also did a stop payment of the cheque on 19.06.2020. I need to know what are the consequences faced due to this.
Answer ( 1 )
After dishonour of cheque he can give you legal notice with in month of dishonour if cheque to make the payment within 15 days and if u will not make the payment then he can file a complaint against u in the court under section 138 of the negotiable instruments act. Before that you make a representation in writing that due to this COVID problem you could not arrange the money so pls give me some time to make the payment and not initiate any action mean time. If he agrees to it then it’s good otherwise you can make the payment after receiving the notice.