How to File a Cheque Bounce Case

हिंदी में पढ़ें
August 20, 2022
By Advocate Chikirsha Mohanty

How to file a Cheque Bounce case?

Sending a Demand Notice:

The following information should be stated clearly in the demand notice:

Drafting a Complaint:

Payment of Court Process fees for filing a Cheque Bounce case

Court Notice to Accused

Evidence

Punishment and Penalty

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

Important things to be kept in mind

How can a lawyer help you in the process?

How to file a Cheque Bounce case?

Cheque bounce is a criminal offense in India, covered under section 138 of the Negotiable Instruments Act. The following information will act as a useful guide on 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 a cheque bounce lawyer ,first, send a demand letter/ legal notice to the 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 a letter should be preserved carefully.

A demand letter can be sent by the complainant 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:

A statement that the cheque was presented within its period of validity
Statement of debt or legally enforceable liability
Information regarding dishonor of cheque as given by the bank
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:

Where the cheque was drawn
Where the cheque was presented
Where the cheque was returned by the bank
Where the demand notice was served by you
You must have all the following documents:
Complaint
Oath letter
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:

Amount on cheque 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 is filed by the payee, the 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/her cheque bounce lawyer puts forward all the evidence like the original bounced Cheque, Cheque Return Memo, Record of sending a demand notice to the 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 the amount of the 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., acknowledgment 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 the accused to appear in 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

A delay in filing the complaint after the lapse of 30 days may be excused by the magistrate only in exceptional circumstances
Dishonor of a cheque due to stop payment is also covered under Section 138 of the NI Act
Presentation of the cheque at the request of the drawer after the demand notice has been sent and the consequent dishonor of the cheque will not mean that the drawer’s time limit under the notice has increased
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
A cheque expires after three months from the date on which it is issued

Connect with an expert lawyer for your legal issue

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 cheques. 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, a 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's Free Legal Advice service to get free advice on your legal issue from expert cheque bounce lawyers.

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

How to file a Cheque Bounce case?

Connect with an expert lawyer for your legal issue

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 the 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 a letter should be preserved carefully.

A demand letter can be sent by the complainant 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:

A statement that the cheque was presented within its period of validity
Statement of debt or legally enforceable liability
Information regarding dishonor of cheque as given by the bank
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:

Where the cheque was drawn
Where the cheque was presented
Where the cheque was returned by the bank
Where the demand notice was served by you
You must have all the following documents:
Complaint
Oath letter
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

Connect with an expert lawyer for your legal issue

Court Notice to Accused

After the complaint is filed by the payee, the 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 the original bounced Cheque, Cheque Return Memo, Record of sending a demand notice to the 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 the amount of the 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., acknowledgment 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 the accused to appear in 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

A delay in filing the complaint after the lapse of 30 days may be excused by the magistrate only in exceptional circumstances
Dishonor of a cheque due to stop payment is also covered under Section 138 of the NI Act
Presentation of the cheque at the request of the drawer after the demand notice has been sent and the consequent dishonor of the cheque will not mean that the drawer’s time limit under the notice has increased
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
A cheque expires after three months from the date on which it is issued

Connect with an expert lawyer for your legal issue

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 cheques. 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, a 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 issue from expert cheque bounce lawyers.

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

Advocate Chikirsha Mohanty

4.0 | 2+ user ratings

Greater Kailash - 1, Delhi

5 years

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