FAQs: Cheque Bounce Case

Q. What is meant by a cheque bounce case?
A. A check bounce case is a legal issue that occurs when a bank refuses to process a cheque owing to inadequate funds in the account or other reasons.

Q. Whether cheque bounce is a criminal and punishable offence?
A. Yes, it is a criminal offence punishable with imprisonment up to 2 years and/or a fine.

Q. What legal action can be taken in the case of a cheque bounce case?
A. The holder has the right to file a complaint under Section 138 of the Negotiable Instrument Act. Also, along with this complaint, a civil suit for recovery of the money can be filed.

Q. How to file a criminal case in a cheque bounce case?
A. To file a criminal case- 15 days after the expiry of the cheque bounce notice, file the complaint before the magistrate Appear in front of the magistrate and provide the necessary details and evidence, if the court is satisfied, summons are issued Once the issuer of the cheque appears in court and either accepts or denies the liability. If he denies the liability of the cheque the issuer has to apply for bail with a surety Both sides file their facts and evidence The court takes a decision.

Q. According to the Negotiable Instrument Act, who can file a complaint regarding cheque bounce?
A. Section 138 of the Negotiable Instrument Act does not bar anyone according to it, any individual, company, or firm (registered and unregistered) can file a case.

Q. In a cheque bounce case, the jurisdiction lies with which court?
A. The courts whose local jurisdiction the offence was committed, that is, the locations where the bank on which the cheque is written dishonoured the cheque, have territorial jurisdiction over cases involving cheque dishonour. Furthermore, if the cheque is given to the bank for payment, the complaint shall be filed in the court where the drawer maintains his account.

Q. Can a matter related to cheque bounce be settled outside the court?
A. Yes, alternative methods can be taken by the parties, but it is advised to get the agreement written and signed once the matter is settled.

Q. Under what circumstances is cheque bounce not considered an offence?
A. There are 6 major conditions- The cheque received is not in proper condition The cheque has been given as a collateral property The cheque has been given in advance The amount written in numbers and words does not match The cheque has been given with the intention of charity or donation The issuer within 15 days of receiving the notice makes the payment.

Q. Can one appeal against the judgement of a cheque bounce case?
A. Yes.

Q. If there are various cheques which have been dishonoured, can only one complaint be filed for all of them?
A. Though it is advisable to file separate complaints. Yet according to Section 220 of the Criminal Procedure Code, only one complaint can also be filed for several dishonoured cheques.

Q. What are the necessary documents that are required to be provided to the court?
A. The original cheque, the legal notice sent to the issuer of the cheque and the evidence that the notice was received by the issuer. Furthermore, the advocate provides a list of documents which help to strengthen the case, they differ from case to case.

Q. Is there any time limit?
A.Yes, the case has to be filed within 30 days of the receipt of the legal notice issued.

Q. What are the consequences of filing a fake case?
A. If someone is implicated in a fraudulent cheque bounce case, he should submit his defence and evidence in court, and he/she will undoubtedly receive justice, or in certain situations, he/she can even seek the Hon'ble High Court to have the complaint case dismissed, may also file a case of defamation.

Q. How much time does a case take?
A. Even though it is difficult to state the exact time given the fast trial court set up for the same purpose the cases may get settled in two to three hearings.

Q. Can a complaint filed be amended under section 138 of the Negotiable Instrument Act?
A. In the case of Oswal Finlease Private Limited v. State of Rajasthan & Anr, the court held that the court cannot punish an individual for a genuine mistake hence the complaint can be amended.

Advocate Chikirsha Mohanty

4.0 | 2+ user ratings Greater Kailash - 1, Delhi
5 years

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