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How to Escape from a Cheque Bounce Case? Legal Remedies & Defense


29-May-2024 (In Cheque Bounce Law)
Sir, my father is a farmer who started a dairy business. A dairy product seller convinced him to provide a loan for purchasing more cows, offering a guarantee through a bank cheque. The loan was given at an interest rate of 3% per month for four years. However, due to low milk sales and the death of cows, it was not possible to repay the full amount. Now, the seller has filed a cheque bounce case against my father based on a dishonored cheque. Please advise on what to do. Also, what is Section 138 of the NI Act for cheque bounce cases?
Answers (2)

Answer #1
919 votes
Cheque bouncing is a criminal offense in India under Section 138 of the Negotiable Instruments Act. If the cheque was issued to settle a legally enforceable debt, the best approach is to negotiate a compromise and pay the due amount. If the liability is valid, there are limited options on how to escape from a cheque bounce case. However, you may explore legal remedies based on the facts of your case.
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Advocate Surya Kawalkar Dangi

Adv. Surya Kawalkar Dangi

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Answer #2
734 votes
If you are looking for how to escape from a cheque bounce case in India, one option is to transfer the case to Lok Adalat, where you can request additional time for repayment and attempt to reach a settlement. Alternatively, you can contest the case on its merits by explaining the financial difficulties and unforeseen circumstances before the Magistrate. The court may consider these factors while deciding the matter.
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Advocate Ashutosh Shukla

Adv. Ashutosh Shukla

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