How to protect yourself against a false cheque bounce case?
In case a false cheque bounce case is filed against you, you must first seek legal advice. It is important to file a reply in the Court stating your points of defense.A criminal complaint for cheque bounce can only be filed when there is an outstanding debt liability. You will have to establish that there is no outstanding payment required to be made by you. If the cheque was issued as a security deposit, gift, or donation, you will be required to include this statement in your reply. You will have to disprove any obligation to pay and have no outstanding financial liability.
Which court should I approach for filing a cheque bounce case?
A cheque bounce case (criminal complaint) is filed in the Court having jurisdiction over the area where the receiver of the cheque maintains their bank account.
Can I recover interest and legal expenses from the drawer of the dishonoured cheque?
Yes, you can recover interest and legal expenses from the issuer of the dishonoured cheque.However, you will have to file a separate summary suit (civil case) to recover such amounts. These amounts cannot be recovered from the drawer of the bounced cheque in criminal proceedings initiated under Section 138 of the Negotiable Instruments Act.In a cheque bounce case (criminal complaint), the issuer/signatory of the cheque can be punished with imprisonment for a maximum term of 2 year, or with fine extending to twice the amount of the cheque, or with both
What is the average time in which a cheque bounce case is resolved?
It is difficult to state an average time for resolution of a cheque bounce case. Depending on your state and district jurisdiction, the time taken in deciding cheque bounce cases varies.
What is the procedure in a cheque bounce case?
Section 138 of the Negotiable Instruments Act, 1881 provides for the procedure to be followed in a cheque bounce criminal complaint. Upon dishonour/ bouncing of cheque, as a first step, you have to send a demand notice to the cheque issuer to make the payment within 15 days. If they fail to make payment within 15 days of receipt of the legal notice, you can lodge a criminal complaint in the Court having jurisdiction of the area where your bank account is located. This criminal complaint must be filed within 30 days from the expiry of the 15-day time period.Once the complaint is filed, the Court will go through the documents sent and verify them. Once the court is satisfied with your complaint, the accused is summoned by the court for a hearing. If the accused doesn't appear in court, the judge can issue a warrant against the concerned person.We have expert cheque bounce lawyers who will help you file the criminal complaint in Court and represent you in the proceedings. In case the drawer fails to make payment of cheque within 15 days of receipt of the legal notice, you may contact to us for filing of criminal complaint. You have to keep in mind that timely action is essential to a cheque bounce case and the criminal complaint must be filed within 30 days from the expiry of the 15 day time period given in the legal notice.For more details, or any queries, please contact our Lawyer now by filling following contact form. We will always happy to help you.
What are the defences that the accused is likely to take in a cheque bounce case?
Criminal complaint for cheque bounce can only be filed when there is an outstanding debt liability. The primary defence of the accused will be to dismiss the outstanding debt liability argument and declare the amount as a security deposit, gift or donation. In this case, the accused will want to disprove any obligation to pay and no outstanding financial liability.
What is the penalty/ punishment that can be imposed on the cheque issuer in a Cheque Bounce Case?
According to the Negotiable Instruments Act, 1881, under Section 138, issuing a bounced cheque is a criminal offence. So, if a complaint is filed in a court and the court finds merit in it, then a person can go to jail or might have to pay a hefty fine. The fine can be up to two times the cheque amount. In case the court decides on a jail time, it is generally for a period of one year, but it can be extended to two years.
