Procedure to take action for cheque bounce due to insufficient funds

672 votes

Hi...If your cheque bounced you have to give legal notice to opposite party and you have to give fifteen days time to him for reply and after that you have to file case within one month before concerned court.
Thank you

Advocate Rama Chandra Shenoy LawRato

787 votes

Dear Sir,
The first step that you need to do is to issue a legal notice to the person, informing him about the dishonour of the instrument and accord him 15 days to return the money. Upon his failure, you can institute a criminal proceeding action him under section 138 of the negotiable instruments act.
The timeline for the case would be from 8 months to 1.2 years

Advocate Abhay Anand J LawRato

772 votes

It cannot be said that how long court will take for settlement. It depends on the pending cases in the court. If court is rush it may take time, if not then it may take less time to dispose the case.
Before filing the case u/s 138 of NI act procedure has to follow, if not case will be dismissed.

Advocate Rajeev S Vadrali LawRato

946 votes

Settlement is basically depends on the mindset of the Opponents. So one cannot exactly tell you on the time consumption. I suggest you that as the case proceeds, the opponents may come forward to settle the case.

Advocate Jagadish N LawRato

824 votes

The payee has to sent the notice to the drawer with 30 days from the date of receiving “Cheque Return Memo” from the bank. The notice should mention that the cheque amount has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer. If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act.
On receiving the complaint, along with an affidavit and relevant paper trail, the court will issue summons and hear the matter. If found guilty, the defaulter can be punished with monetary penalty which may be twice the amount of the cheque or imprisonment for a term which may be extended to two years or both. The bank also has the right to stop the cheque book facility and close the account for repeat offences of bounced cheques

Advocate Edward D'souza LawRato