How to File a Cheque Bounce Case

हिंदी में पढ़ें
April 13, 2021
By Advocate Chikirsha Mohanty





How to file a Cheque Bounce case?

Cheque bounce is a criminal offence in India, covered under section 138 of the Negotiable Instruments Act. The following information will act a useful guide in what steps can be undertaken in case your cheque is bounced:

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Sending a Demand Notice:

Once the cheque has been returned by the bank, then before filing a legal complaint against the drawer, you must, with the help of acheque bounce lawyer,first send a demand letter/ legal notice to such drawer within a period of 30 days from the date the cheque has been returned to you by the bank. The letter must demand the amount from the drawer and also the legal action that can be initiated against him 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 in the demand notice:

  1. A statement that the cheque was presented within its period of validity

  2. Statement of debt or legally enforceable liability

  3. Information regarding dishonour of cheque as given by the bank

  4. Demanding the issuer to pay the amount due within 15 days of receiving such notice

    Consult:Top Cheque Bounce Lawyers in India



Drafting a Complaint:

If the drawer has not replied to your demand notice within a period of 15 days from the date of the delivery of the demand letter or has refused to pay your amount, then the next option available in such a case is to file a complaint in court within a stipulated time period of 30 days. Before filing a legal complaint, it is important to understand which court you should approach in such cases. You can file the complaint in a court within whose local limits of jurisdiction any of the following incidents have taken place:

  1. Where the cheque was drawn

  2. Where the cheque was presented

  3. Where the cheque was returned by the bank

  4. Where the demand notice was served by you

  5. You must have all the following documents:

  6. Complaint

  7. Oath letter

  8. Photocopy of all the documents such as cheque, memo, notice copy, and acknowledgment receipts



Payment of Court Process fees for filing a Cheque Bounce case

While filing a cheque bounce complaint, the complainant is required to pay court fees. The Court fees vary depending upon the amount of the cheque against which the complaint is being filed. The requisite court fees for various cheque amounts have been listed below:

Amountoncheque Court fee
Rs. 0 to Rs. 50,000/- Rs. 200

Rs. 50,000/- to Rs. 2,00,000/- Rs. 500

Above Rs. 2,00,000/- Rs. 1000

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Court Notice to Accused

After the complaint being filed by the payee, court issue summons to the accused person who owes the money to the person who filed the complaint.



Evidence

The Complainant with the help of his/hercheque bounce lawyerputs forward all the evidence like original bounced Cheque, Cheque Return Memo, Record of sending a demand notice to accused and all other relevant documents in support of his/her case to prove that accused is under a legal obligation to pay the stated amount in the bounced cheque.



Punishment and Penalty

After the whole trial process, If found guilty, the accused can be punished with a monetary penalty which may be double of the amount of cheque or imprisonment up to 2 years or both.

Consult:Top Cheque Bounce Lawyers in India



Memo of Advocate is essential at the time of filing of the suit along with signatures of the complainant

  • After the case is filed in the court, all documents are cross-checked by Judicial Magistrate First Class, so original documents such as original cheque (bounced), original memo, a copy of the notice, receipt of the post office, receipt of U.P.C., acknowledgement receipt, are required at the time of cross-checking

  • The period of limitation is also verified at this stage

  • The Process Form, also known as the Bhatta, is filed by the complainant or lawyer, along with the address of accused

  • The court then issues summons to accused to appear in the court on the specific date

  • If the accused does not appear in court on the date of hearing, the court can also issue a bailable warrant on the request of the complainant

  • It the accused still does not appear before the court, the court may issue a non-bailable warrant of arrest



Important things to be kept in mind

  1. A delay in filing the complaint after the lapse of 30 days may be excused by the magistrate only in exceptional circumstances

  2. Dishonour of a cheque due to stop payment is also covered under Section 138 of the NI Act

  3. Presentation of the cheque at the request of the drawer after the demand notice has been sent and the consequent dishonour of the cheque will not mean that the drawer’s time limit under the notice has increased

  4. A cheque issued as a gift/donation/any other obligation, will not be covered under Section 138 of the Act. For this section to apply, the cheque has to carry a legal obligation

  5. A cheque expires after three months from the date on which it is issued

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How can a lawyer help you in the process?

A lawyer having a significant amount of experience in the field of cheque bounce issues can be of great help if you are facing dishonor of cheque. An experienced cheque bounce attorney can ensure that you have made a strong case when you are filing or defending a cheque bounce complaint. He can take care of all the paperwork and can help you understand all the complexities ofa cheque bounce case. He can draft and send, on your behalf, legal notice or a reply to a legal notice in case of dishonor of cheque and can track the limitation period for your case so that you do not suffer any legal damage. Thus, a cheque bounce attorney can help you throughout your legal journey and can ensure low chances of failure in your cheque bounce case.You can also use LawRato'sFree Legal Adviceservice to get free advice on your legal issuefrom expert cheque bounce lawyers.

Related Post:Do's & Don'ts in case of a Cheque Bounce



 

These guides are not legal advice, nor a substitute for a lawyer
These articles are provided freely as general guides. While we do our best to make sure these guides are helpful, we do not give any guarantee that they are accurate or appropriate to your situation, or take any responsibility for any loss their use might cause you. Do not rely on information provided here without seeking experienced legal advice first. If in doubt, please always consult a lawyer.


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User Reviews


4.7 - 21 reviews
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Cheque given as security for loan? What to do?

Rohit on Jul 24, 2021
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Easy to understand. All details covered regarding cheque bounce.

Payal on Jun 29, 2021
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I want to hire a cheque bounce advocate. Who to call?

Renuka on Jul 12, 2021
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can I file civil and criminal case both in cheque bounce?

Anupam on Jul 23, 2021
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thanks for the details. Very helpful for my cheque bounce case.

Hemant on Jul 11, 2021
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Thanks for the detailed article.

Prem on Jun 26, 2021
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thanks for the information

Ajay on Jun 23, 2021
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nice one. Please share more info

Niti on Jul 25, 2021
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I want to know more about this law. Good work

Shivangi on Jul 10, 2021
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The article is written ver well. Learned a lot about my case through this.

Aditi on Jun 14, 2021
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needed a lawyer….what is the procedure?

Renuka on Jun 24, 2021
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good article. Can you share more detail

Sapna on Jun 28, 2021
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Good work with the article. Solved all my legal queries. Regards.

Sathish on Jun 26, 2021
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who can I contact for my legal case?

Mahima on Jul 13, 2021
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nice work. Learned a lot. Thanks

Vivek on Jun 15, 2021
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Nice one.

Anusha on Jun 25, 2021
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Satya on Jul 15, 2021
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learned all the basics about the legal issue. Good article. Keep it up.

Gurpreet on Jul 02, 2021
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Written in a very simple language.

Isha on Jul 02, 2021
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Nice piece on the subject.

Ritu on Jun 12, 2021
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thanks for the legal advice

Anoop on Jun 18, 2021

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