Cheque Bounce With Reason Of Wrongly Delivered

347 votes

If a cheque bounces due to the wrong payee name, the payee can take legal recourse under the Negotiable Instruments Act, 1881, which provides for the recovery of the amount specified in the bounced cheque.

The payee can send a legal notice to the issuer of the cheque, demanding payment of the amount specified in the cheque within 15 days of receipt of the notice. If the issuer fails to make payment within the stipulated time, the payee can file a criminal complaint against the issuer under Section 138 of the Negotiable Instruments Act.

Under Section 138, the issuer can be punished with imprisonment for a term of up to two years, or with a fine that is twice the amount of the cheque, or with both. The payee can also file a civil suit for recovery of the amount specified in the cheque.

It is important to note that the payee must provide evidence to prove that the cheque was issued in their name and that it bounced due to the wrong payee's name. Therefore, it is advisable to keep a copy of the cheque and the legal notice sent to the issuer, as well as any other relevant documents or correspondence.

LawRato LawRato

955 votes

yes you can file it under section 138 of Negotiable instruments act, if you know well each other and he drawn cheque for legal liability. then in that situation you can filed case against him. before filed case you have to send notice to him and demand cheque amount

Advocate Ashwini Ketan Patani LawRato

505 votes

once the cheque is bounced you have to issue notice under the negotiable instruments act.
it attracts criminal action.
if you do not issue notice under the stipulated time then limitation starts running against you.

Advocate Garima Anil Mehrotra LawRato

588 votes

No you cannot file under 138 as the cheque is not bounced due to unsufficiency of funds. cheque is bounced because proper name of the payee is not written. Also to file a 138 complaint there are certain grounds. In your case where the cheque is not drawn on your name, there stands no right to take any action under 138.

Advocate Megha Gupta LawRato

480 votes

The provisions of Section 138 of the NI Act 1881 do not apply. Sec 138 N.I. does not apply to the reason given in the cheque return memo for dishonouring a cheque. Act.

Advocate Chikirsha Mohanty LawRato