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Is there a need to file a recovery suit along with a 138 case


22-Apr-2023 (In Cheque Bounce Law)
I have filled a case u/s 138 of NIA. Should I have to file a suit for recovery too because case u/s 138 is to punish the accused and not to recover the dues.
Answers (6)

Answer #1
536 votes
You may file a summary suit under order 37 CPC for recovery of your amount in case there is a written contract between the parties. Else, a recovery suit may be filed. It is advised that you should take a detailed legal opinion based on the actual facts of your case.

Answer #2
500 votes
Both cases can be filed simultaneously. U can also file a summary suit wherein it is easier to recover and is a faster way.
In 138 proceedings you are also entitled to compensation.
In civil suits, you can claim interest also.
Answer #3
667 votes
The proceedings under Section 138 of NI act is purely criminal but one of the reliefs prayed for in the Petition can also be for compensation/fine.
You may also file a summary recovery Suit under CPC before civil court if the cheque bounced was issued in lieu of a liability owed by Accused. This is a better and faster relief.
The Section 138 proceeding does not bar you from seeking civil remedy.
Answer #4
846 votes
Yes of course
In order to recover the amount of money you need to file a civil suit under order 37 of The code of civil procedure ,1908 against the respondents .
This is a summary suit and you can get the relief very fast as compared to other civil suits.
Answer #5
791 votes
Even if you file a suit for recovery you may not be able to punish the accused. Suit for recovery is also for recovery of money due and proceedings are civil in nature. At max you can claim interest upon the amount due.
Only if u have a really strong case that the debtor has cheated you or misappropriate your finds you can not initiate criminal proceedings against him.
Answer #6
473 votes
Filing a Recovery Suit Alongside a Section 138 Case
In India, when a cheque bounces, legal recourse can be sought under Section 138 of the Negotiable Instruments Act, 1881. This section deals with the criminal liability of the drawer of the bounced cheque. However, it's common for creditors to wonder whether they should also file a separate civil recovery suit in addition to the Section 138 case.
Here's what you need to know:
  1. Section 138 of the Negotiable Instruments Act: This section allows the payee to initiate criminal proceedings against the drawer of the bounced cheque. If the drawer is found guilty, they can face penalties, including imprisonment and fines.
  2. Recovery of the Cheque Amount: In many cases, payees are primarily interested in recovering the cheque amount along with any interest and legal expenses. The criminal case under Section 138 focuses on penalizing the drawer but may not necessarily result in the recovery of the cheque amount.
  3. Filing a Civil Recovery Suit: To ensure the recovery of the cheque amount, payees can file a separate civil recovery suit. This allows them to claim the outstanding amount along with any additional damages or interest.
  4. Simultaneous Proceedings: There is no legal bar against filing both a Section 138 case and a civil recovery suit simultaneously. In fact, pursuing both avenues can increase the chances of recovering the owed amount. The civil recovery suit is not dependent on the outcome of the criminal case.
In summary, while Section 138 of the Negotiable Instruments Act addresses the criminal aspect of a bounced cheque, it may be advisable to file a separate civil recovery suit to ensure the recovery of the cheque amount. Simultaneous proceedings are legally permissible and can provide a comprehensive approach to addressing the issue of a bounced cheque. It's essential to consult with a lawyer who specializes in these matters to navigate the legal process effectively.
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