Advice Legal

The cheque of a private limited company is a commercial liability and not just a liability to pay an amount. In case of dishonour of a cheque of a private limited company, there can be implications both legal as well as otherwise, depending upon the circumstances. It is extremely important for the owner of any business, supplier or service provider to act at the earliest after a bounced cheque, as there is a lot that can depend upon it. Which Law Applies When a Company Cheque Bounces? Cheque dishonour cases in India are primarily governed by the Negotiable Instruments Act, 1881. However, when a private limited company issues the cheque, the legal analysis becomes more detailed because the company acts through its directors, authorised signatories, and responsible officers. Under Section 138 of the Act, proceedings may arise when: ●        The cheque was issued towards a legally enforceable debt or liability. ●      ...

A cheque dishonour rarely becomes a legal dispute on the day the bank returns it. More often, it begins with a phone call.   "I'll transfer the money next week."   "The payment is stuck because of year-end closing."   "Please don't send any legal notice. Give me ten more days."   These conversations are common after a cheque bounces. What is less common is someone quietly calculating the statutory deadline while those discussions continue. By the time both parties realise that the promised payment is not coming, the legal timeline may already be nearing its end.   Ironically, many cheque dishonour complaints do not become difficult because liability is disputed. They become difficult because the payee miscalculates a date that seemed too straightforward to get wrong.   Understanding that timeline requires looking beyond the calendar and appreciating what the law actually treats as the starting point.   The Law Does Not A...

Workplace concerns do not always arise at convenient or predictable moments. Employees may require time before deciding whether they are prepared to raise workplace issues. Organisations, too, are often required to navigate difficult questions before determining what should happen next. One of the biggest misconceptions regarding workplace timelines is that they are merely questions of dates and deadlines. Practising lawyers, however, seldom begin such discussions by asking how much time has passed. They are considerably more likely to ask whether they have sufficiently understood the circumstances before organisational decisions are made. Understanding workplace timelines, therefore, requires considerably more than counting days. Quick Legal Answer Timeline-related questions should not be viewed exclusively through the lens of dates and deadlines. Lawyers frequently consider the surrounding circumstances, applicable requirements, and practical concerns that may arise befor...