Cheque Bounce

Section 138 of the Negotiable Instruments Act defines the offense of cheque dishonor. It occurs when a cheque is returned due to insufficient funds or when it exceeds the amount arranged to be paid from the drawer’s account. The law ensures that the payee receives legal protection against non-payment.

Conditions for Filing a Complaint

To file a complaint for a cheque bounce case under Section 138, certain conditions must be met:

The cheque must be presented to the bank within six months from the date mentioned or within its validity period.

The payee or holder of the cheque must send a written notice demanding payment within 30 days of dishonor.

The drawer must make the payment within 15 days after receiving the notice. If they fail, legal action can be initiated with the help of the best cheque bounce lawyer.

Penalties for Cheque Bounce

If the accused is found guilty, they may face imprisonment of up to two years, a fine that can be double the cheque amount, or both. However, courts often encourage settlements when both parties are willing to resolve the dispute through compounding.

Jurisdiction and Filing Procedure

Cheque bounce cases are usually tried in magistrate courts. The complainant should file the case either where the cheque was presented or where the bank branch is located. For multiple dishonored cheques, separate complaints can be filed for each instance.

Legal Recourse for the Payee

If your cheque has bounced, you can file a complaint under Section 138 of the Negotiable Instruments Act. It’s essential to follow all legal requirements and deadlines carefully. For proper representation, hiring the best cheque bounce lawyer ensures that your rights are protected and your case is presented effectively.

Conclusion

Cheque bounce cases can be complicated, but with timely legal guidance and accurate documentation, justice can be achieved efficiently. Always consult a professional lawyer to stay updated with the latest legal provisions and avoid procedural delays.