I am the distributor of a branded company. I sold mobile stock to a retailer who is now refusing to pay my bills for the last six months. He also gave me some cheques which bounced on account of lack of funds in his account. He had also 'stopped payment' on one of the cheques issued by him.
What should I do in the circumstances?

From India, Chaklasi

Presuming you have a document as evidence showing deliveries of the goods mentioned, you can initiate legal proceedings against the other party.

Bouncing of cheques (payment not clearing due to insufficiency of funds) is a legal offence under Section 138 of the Negotiable Instruments Act if a cheque drawn by a person is returned from the bank unpaid due to: insufficiency of funds in the drawer’s account; or the amount of the cheque exceeding the amount arranged to be paid from that account by an agreement between the drawer and the bank (for example under overdraft facilities). This offence may be punishable by two years imprisonment, a fine of double the amount of the cheque, or both.

Insofar as payment stops are concerned, these too, can/ would be questioned in the appropriate Court of Law.

You would, of course, require the help of a Lawyer in going about this.

From India , Delhi
Dear members,
Seevil had an additional query to the one posted above. He posted this separately.
For your benefit and the sake of continuation, I am putting up the link to this post here.
Best regards,

From India , Delhi
You have options to take legal poceedings under Sec 138 of N.I Act and also money suit for unpaid amount.
From United States, San Francisco

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