The Hongkong and Shanghai Banking Corporation Limited (“HSBC”), one of the world’s leading international banks, engaged Majmudar & Partners to address a dispute involving the dishonour of cheques tendered for repayment of liabilities under credit facilities. Majmudar & Partners provided comprehensive legal support to help HSBC pursue its financial claim while ensuring compliance with Indian banking and commercial laws.
Assistance with Dispute Resolution
Majmudar & Partners played a pivotal role in addressing the complexities of this cheque dishonour dispute. Key contributions included:
- Evaluating the Legal Position: Conducted a detailed review of the credit facility agreements, cheque dishonour specifics, and applicable legal frameworks under the Negotiable Instruments Act, 1881 (“NI Act”), to assess HSBC’s legal standing and available remedies.
- Drafting and Issuing Legal Notices: Prepared and issued legally sound notices under Section 138 of the NI Act to the defaulter, outlining the dishonour of cheques and seeking repayment of liabilities within the prescribed statutory period.
- Initiating Legal Proceedings: Advised HSBC on initiating cheque bounce proceedings and recovery actions in appropriate forums to enforce its financial rights. This included preparing case filings and coordinating litigation strategy to ensure swift resolution.
- Defending Counterclaims: Assisted HSBC in navigating counterclaims raised by the borrower, ensuring that these did not impede the progress of the main recovery proceedings.
The dispute involving cheque dishonour highlighted the critical need for robust legal strategies in recovering unpaid liabilities. Majmudar & Partners’ expertise in dispute resolution and banking law enabled HSBC to assert its rights effectively and pursue repayment in compliance with Indian legal procedures.
Majmudar & Partners offers specialized legal services in dispute resolution, ensuring that financial institutions can recover dues while adhering to regulatory standards. Contact us to learn how our expertise can support your organization in resolving disputes efficiently.