How to recover part payment of cheque
Recovery of part payment The court outlined the following procedure for cases involving part payments on cheques: 1. **Adherence to Section 56 of the Negotiable Instruments Act, 1881**: When part payments have been made on a cheque, the payee must endorse these payments on the cheque itself. Section 56 specifically requires that any part payment must be noted on the cheque to reflect the remaining balance. 2. **Filing a Suit in a Court of Plenary Jurisdiction**: If the payee fails to make the necessary endorsements as required by Section 56, they cannot simply present the cheque for encashment or file a suit under Order XXXVII, Rules 1 and 2, Code of Civil Procedure, 1908 (which provides for summary procedure suits). Instead, they must file a suit in a court of plenary jurisdiction (a regular civil court) to recover the balance amount. 3. **Returning the Plaint for Presentation in the Appropriate Court**: In this case, the trial court should have returned the plaint to the appella...