What if the check of a student bounces in the organizations account. If the student has already taken 15 days classes in the institute. What is the process to recover the fee. Should the institute file a FIR against the student as the cheque issued was of students personal account only.Please do reply.
From United States , New York
+2 Others


You mean the cheque right?? Suspend the student and reproduce the cheque in the bank ..... if it still bounces even after the said time by the student, you may request the bank, itself will take the further action.
Filing FIR, is not a good idea, since it's not absolutely a criminal offense, it is SEMI-CRIMINAL in nature. being its and institution and knowing the importance of the future career prospects of the student, it is not advisable to make it a big issue, and cheque bounces are common these days, but always recoverable.......... give your student a reasonable time in which he can arrange the money to deposit in the bank.....
What is amount of the cheque?? (Also important before deciding)
And in cheque bounce cases it is always advisable that it has to be produced again in the bank.......

From India , Bangalore
The bouncing or dishonor of cheques and punishment falls under Section 138 of Negotiable Instruments Act . Legal Notice to be given by the Payee to the drawer (student) within 30 days of date of Bank intimation letter so that the cheque bounce is brought to the knowledge of the defaulter ( drawer) and also payment is demanded within 15 days from notice receipt. Normally on receipt of such statutory notice, largely the defaulter(s) pays up. Or else one can file a suit for recovery under CPC ( order 37 civil procedure code for summary procedure ) and can also file a criminal complaint under section 138 of Negotiable instruments Act. Such process is tenable if the cheque amount is towards discharge of debt or liability and payment should not be for any compromise or settlement.

Well in this case softer approach is ideal keeping high values and sentiments of youngster ! Here the case is of a student, and you seem to be an education or knowledge imparting organization /institute you can always call him up and explain the consequence and eventually the money would come as I see. Wisdom should dawn on the concerned .

TS Narasimhan

From India , Gurgaon

there are intentional offences which should be viewed seriosly. but in this case on humanatrian grounds help can be sought from organsation if the student is realy in trouble.
From India , Bangalore

Hi All,
Cheque bounce in the given instance in not covered under section 138 of NI Act as there does not seems to be legal debt liability required for the activation of the section 138. However you can file the civil suit for the recovery which can be decreed in your favour.
Raj Singh Phogat

From India, Delhi

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