Can a cheque bounce case and recovery suit be filed simultaneously

727 votes

Sir / Madam, Cheque is a negotiable instrument as defined under NI Act 1881. If it has been dishonoured for want of sufficient funds etc, the Criminal case can be filed after serving a statutory legal notice. Whereas you can file a civil case if there is any written agreement or promissory note relating to the amount.

LawRato LawRato

985 votes

Can a cheque bounce case and recovery suit be filed simultaneously
> in Cheque Bounce LawCan we file cheque bounce case under 138 of NI Act and similary civil suit for recover of money
Yes you may file both nature casescat time

Advocate Yadagiri Mailaram LawRato

823 votes

Hi
138 Negotiable instruments act is a criminal proceeding.
Though there is a provision for the defaulter to compromise and pay up the cheque amount prior to decree in 138 Case. However in 50% of cases parties are unlikely to compromise in 138 case beyond a certain point, where as in remainder 50% , parties do compromise to avoid jail term.
A civil suit for recovery of money can be filed any time within 3 years from date of default.
So , depending on proceedings of your case, you should be able to decide on whether the party is likely to pay up prior to decree in 138 case and if the party is unwilling to pay despite threat of him going to jail, then you should file a civil suit for recovery.

Advocate Rajagopalan LawRato

559 votes

Dear,

Yes. You can file a cheque bounce case as well as a civil suit for money recovery simultaneously as there is no bar in filing a civil case along with criminal case in India. File the cheque bounce case in the court of jurisdiction of the first class magistrate where the cheque was bounced and file a money recovery suit under the jurisdiction of the civil court where the defendant resides or works for gain or profit or where the cause of action arose for filing the suit. Hope this helps!

Advocate B. Srikiran LawRato

202 votes

1. Nature of Cheque Bounce Case:
   • Criminal Aspect: When a person issues a bounced cheque, it can lead to a criminal case under Section 138 of the Negotiable Instruments Act, 1881. This section makes the dishonor of a cheque a criminal offense punishable with imprisonment and/or a fine.
   • Civil Aspect: In addition to the criminal case, the person who is owed money through the bounced cheque can also initiate a civil suit for the recovery of the cheque amount. The civil suit is a separate legal action from the criminal case.
2. Simultaneous Filing:
   • It is entirely legal and permissible to file both a criminal case and a civil suit simultaneously in a cheque bounce matter. Each case serves a different purpose.
   • The criminal case seeks punishment for the drawer of the bounced cheque, while the civil suit focuses on recovering the amount due.
3. Advantages of Simultaneous Filing:
   • Filing both cases simultaneously allows the aggrieved party to pursue both criminal penalties and civil remedies.
   • It can increase the chances of recovering the cheque amount, as the civil suit provides a way to seek compensation even if the criminal case results in a conviction.
4. Separate Proceedings:
   • It's important to note that the criminal and civil proceedings are separate, and the outcome of one does not directly impact the other.
   • The criminal case primarily deals with the imposition of penalties, while the civil suit focuses on monetary recovery.
5. Legal Representation:
   • It is advisable to seek legal counsel when dealing with cheque bounce cases, as the legal procedures can be complex.
   • An experienced lawyer can help navigate both the criminal and civil aspects of the case effectively.

In summary, a cheque bounce case can be both a criminal and civil matter in India, and it is legally permissible to file both simultaneously. The criminal case focuses on penalties, while the civil suit aims at recovering the cheque amount. Seeking legal counsel is advisable to navigate these legal proceedings successfully.

Advocate Chikirsha Mohanty LawRato