Procedure to file case against cheque bounce u/s 138 of NI Act

613 votes

If you have received summons then engage a lawyer and get a bail and contest the case. If the cheque is issued 4 years earlier than return of cheque is not valid and cheque is valid only for three months

Advocate Ranjith LawRato

945 votes

Dear sir /mam,

You can get a relief before magistrate court under Section. 138 of NI Act. Even you can ask for settlement by filing a memo before the same court . Please appoint an advocate for further legal assistance. Good luck :)

Thanks and regards -
Sujatha.D

Advocate Sujatha. D LawRato

632 votes

U have to contest case by going court obtainbail and rebut presumption available with all documents since then itself u can do by challenging in court So gfo on and rebutt presumption under sec.139 of ni act

Advocate Nagesh B L LawRato

940 votes

STEPS INVOLVED
Notice:
Notice is the first step of how to file case against cheque bouncing. Notice against bouncing of Cheque is to be issued within one month of the date of return of the Cheque by the bankers. Service of notice on the person issuing the Cheque is mandatory; the mode of service of notice can be any recorded delivery which is admitted as evidence under the Indian Evidence Act.Notice should be sent by Registered AD., Speed Post only. The purpose of making such provision is to make the person issuing the Cheque aware about the fact that the Cheque issued by him has been returned by his bankers due to insufficiency of funds in the account and he has to make arrangement for the amount within the stipulated period and intimate the banker as well as the person to whom the Cheque has been given by him.

Filing of Complaint:
The filing of the complaint is the second important stage of how to file case against cheque bounce and should be done carefully through a highly qualified lawyer. The complaint is to be filed before the Magistrate of the area concerned within 30 days from the date of dispatch of notice under Section 138 of the Negotiable Instruments Act.

Notice to the accused:
The court issues notice to the accused person or the person who has issued the cheque after the filing of the complaint and the said person is required to appear before the court and seek bail from the court and contest the matter if any friable issue is raised by him.

Evidence:
The evidence in support of the complaint is the cheque, the memo issued by the bank and the record showing the service of notice on the person who has issued the cheque and all other relevant documents in support of the matter which can prove that the accused is under legal obligation to pay the amount under the bounced cheque.

Process of Trail:
The process of trial for cases under Section 138 of the NI Act is summary and the court has to take into consideration the records furnished by the complainant and the evidence in support. The complainant is asked to lead his evidence during which he summons the records from the bank related to the cheque . The accused is given the opportunity to cross-examine. The accused is thereafter asked to lead his evidence and rebut the allegations against him.
The court then proceeds to dispose of the matter on the merits and accordingly arguments on all issues are head and the matter is decided accordingly.

Punishment:
The punishment as contained under Section 138 of the NI Act is two years and a penalty of the amount equal to two times of the amount as mentioned on the cheque.

The person who has issued the cheque can be jailed besides the direction to pay double the amount of money as mentioned on the cheque and the court may also impose the penalty on the said person.

Advocate Navya LawRato