Is there time limit to file Cheque bounce case?

823 votes

Hi, you have to give demand notice within 30 days from the date of cheque bounce calling the opponent to repay the amount within 15 days from the date of receipt of the notice, and file a case before jurisdictional court within 30 days after lapse of that 15 days,
Punishment is 6 months to 2 years. please contact me for further assistance.
Thank you

Advocate Sampath Kumar R LawRato

938 votes

Yes, within 45 days of cheque bounce you have to file the case. You have to send notice before the expiry of 30 days of bounce. If the cheque is dated you can re-present it before three months of such date

Advocate Geetha D Philip LawRato

797 votes

Do's & Dont's in case of a Cheque Bounce

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INTRODUCTION: WHAT IS A CHEQUE?

A Cheque is a bill of exchange drawn upon a specified banker & not to be expressed to be payable otherwise than on demand. The following are the essential characteristics of a cheque:

It has to be in writing
It has to be an unconditional order
Banker has to be specified
Payment should be directed to a specified person
It should be payable on demand
It should be for a specific some of money
Should have the signature of the drawer

BOUNCING OR DISHONOR OF CHEQUE:

A cheque is said to be dishonoured or bounced when it is presented for payment to a bank but it is not paid because of some reason or the other.

The following can be the reasons for bouncing of a cheque in India:

Signature is not matching
There is overwriting in the cheque
Cheque was presented after lapse of six months, i.e. after the cheque has expired
Account was closed
Insufficient funds in the account
Payment stopped by the account holder
Opening balance insufficient
Disparity in the words and figures mentioned on the cheque
In case the cheque is issued by a company, the same does not bear the seal of the company
Mismatch in account number
In case of joint account where both signatures are required, only one sign is there
Death of the customer
Insolvency of the customer
Insanity of the customer
On the order of the garnishee
Crossed cheque
When a cheque is issued against the rules of trust
Alteration in cheque
Doubt in genuineness of the cheque
Presented at the wrong branch
Crossing limit of overdraft (OD)
Cheque bouncing is a criminal offence in India. The following tips and steps will provide for as a useful guide for cases of cheque bouncing as per the provisions of the Negotiable Instruments Act:


Step 1 : Demand Notice

Once the bank has return the cheque, i.e. the cheque has bounced, you are required to send a letter (demand notice) within 30 days of such bouncing to the party who wrote the cheque (the drawer) threatening to initiate proceedings under the Negotiable Instruments Act in case the amount is not paid within a stipulated time period (usually 15 days).

Even though there is no prescribed format for this notice, its purpose of demanding payment and informing the issuer that s/he will be prosecuted in case payment is not made should be highlighted very clearly. Further, proof of delivery of such letter should be preserved carefully.

Demand letter can be sent by the complainant her/himself. However, it is advisable to get the draft vetted by a cheque bounce lawyer before sending it to the person concerned.

The following information should be stated clearly demand notice:

Statement that the cheque was presented within its period of validity.
Statement of debt or legally enforceable liability.
Information regarding dishonour of cheque as given by the bank.
Demanding the issuer to pay the amount due within 15 days of receiving such notice.

Advocate Kishan Dutt Kalaskar LawRato