Cheque got bounced. Is there any case possible? Under what section?


If I have a cheque and it gets bounced due to stop payment / cheque lost or signature difference, can there be a case under Section 138 NI?

 

Answer

 

The Recent Supreme Court and High Court judgement have tried to cover various grounds on which a complaint under Section 138 NI Act can be filed. 

 

Stop payment has been considered as one of the grounds for filing the said complaint. 

 

With respect to signature difference, it shall depend on the trial court. It depends upon whether the difference in signature was intentional or unintentional. The contents of the reply to the legal notice you send the drawer shall also be considered.

 

We would need more information to advise with regards to Dishonor due to cheque getting lost. Was the loss reported to the bank / Police? 

 

However, we would like to mention that you need to follow the procedure laid down under Section 138 of the NI Act which includes sending a legal notice demanding payment and only thereafter filing the complaint in the competent court.

 

Kindly contact us for any further details and action.

 


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