Cheque Bounce Complaint

Cheque Bounce Complaint

" File Complaint for Cheque Bounce. "

file Complaint for Cheque Bounce Complaint.

₹ 999/- (Consultancy Only)

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2 Lakhs

Happy Customers

300+

Professionals

250+

Partners

₹ 999/- (Consultancy Only)

We'll never share your email with anyone else.

2 Lakhs

Happy Customers

300+

Professionals

250+

Partners

 
 

How it Works?

 
 

Briefing of Facts/Case/Suit

We Ask You to Brief your case facts to prepare for filing.

 

Drafting & Filing Facts/Case/Suit

We make draft of your case and do the filing process.

 

Litigation Process Facts/Case/Suit

We prepare for court trial process to appear before court to present facts.

 
 
 

What is Cheque Bounce Complaint?

 

In case a cheque is dishonored, if there is no payment made by the debtor within 15 days of sending legal notice, you need to file a criminal complaint us 138 of NI Act in concerned Court of law to recover the cheque amount. LEGALTAX will help you draft and file the cheque bounce case through an expert cheque bounce lawyer.

In a cheque bounce case, a legal notice needs to be sent first before filing of the complaint.

 

Limitations in timeline in a cheque bounce case

 
  • • The legal notice must be sent within 30 days from the date of bouncing of the cheque
  • • The legal notice provides the cheque issuer 15 days from the date of receipt of notice to make the payment
  • • In case the drawer fails to pay within 15 days, then a criminal complaint is to be filed in the Court within 30 days from the expiry of the 15 days.
 

Documents Required for cheque bounce complaint

  1. Original Cheque.
  2. Copy of Legal Notice Along with original Speed post receipts.
  3. Original Return memo or Debit memo issued by Bank.
  4. Any other document related to the alleged transaction.
 

Procedures/Steps in Cheque Bounce Case

 

Step 1

SEND A LEGAL NOTICE/ DEMAND LETTER TO THE DRAWER

Before filing a suit against the drawer, a legal notice/demand letter must be sent to him. The notice must be sent within 30 days from the date on which the bank returns the cheque along with the information that the cheque is dishonoured. You can take assistance from a lawyer to draft the legal notice in such a case.

Step 2

FILLING A COMPLAINT IN CONCERNED COURT OF LAW.

If the drawer does not make the payment within 15 days from the date on which the notice has been sent to him, then the payee can initiate legal action against such person within 30 days from the date of expiry of the 15 days period provided to the drawer.

 
 

Things to know about Cheque Bounce

 
1. What is the conclusion or imprisonment in a cheque bounce case?

The maximum punishment that can be awarded to the accused in a cheque bounce case is 3 years of imprisonment along with fine that can extend upto double the cheque amount.

2. what is the time limitation when the notice has been served should I file a case against the drawer?

A case under section 138 of the Negotiable Instrument Act, 1881 can be filed within 30 days from the date of expiry of 15 days period from which the notice has been served to the drawer, i.e. 45 days from the date on which notice has been served.

3. What happened when the prescribed time for filing a case under section 138 expires?

If the time for filing a case under section 138 is expired, then another remedy available in such a case is to file a summary suit for recovery of money or initiate criminal proceedings under section 420 of IPC against the drawer within 3 years from the date on which the cheque is issued.

4. What do you mean by summary suit for recovery of money?

Summary suit is a civil legal proceeding initiated for recovery of money due under any written agreement, cheque etc. These proceedings are different from normal recovery suit, as here the liability to prove that petitioner is not liable to recover any amount is on defendant for which he needs to obtain leave to defend from the court.

5. What should a client do in case I do he do not finds the drawer’s address?

You need to know to address of the drawer for serving legal notice to him, in case you do not have any information regarding his current address then you can serve the legal notice to the last known address.

6. What is the average time in which a cheque bounce case is resolved?

The average time for resolution of a cheque bounce case depends on the district court you are filing your case before. The case load and infrastructure a court has, are factors to consider. A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude.

7. Which court should I approach for filing a cheque bounce case?

According to the Negotiable Instrument (Amendment) Act, 2015, a cheque bounce case can be filed in a court within whose local limit of jurisdiction is the bank to which the cheque is presented is situated.

8. Can I recover interest and legal expenses from the drawer of the dishonoured cheque?

Yes, you can recover interest and legal expenses from the drawer of the dishonoured cheque in a summary suit for recovery of money, but not in the proceedings initiated under Section 138 N.I. Act. However, under Section 138 N.I. Act the award may be higher than the cheque amount.

 

Fee Structure

 
  • • Client are required to pay 70% of the case fee to start the work.
  • • 30% is payable upon settlement/order.
 
 
 

FAQ

 

The maximum punishment that can be awarded to the accused in a cheque bounce case is 3 years of imprisonment along with fine that can extend upto double the cheque amount.

A case under section 138 of the Negotiable Instrument Act, 1881 can be filed within 30 days from the date of expiry of 15 days period from which the notice has been served to the drawer, i.e. 45 days from the date on which notice has been served.

If the time for filing a case under section 138 is expired, then another remedy available in such a case is to file a summary suit for recovery of money or initiate criminal proceedings under section 420 of IPC against the drawer within 3 years from the date on which the cheque is issued.

Summary suit is a civil legal proceeding initiated for recovery of money due under any written agreement, cheque etc. These proceedings are different from normal recovery suit, as here the liability to prove that petitioner is not liable to recover any amount is on defendant for which he needs to obtain leave to defend from the court.

You need to know to address of the drawer for serving legal notice to him, in case you do not have any information regarding his current address then you can serve the legal notice to the last known address.

The average time for resolution of a cheque bounce case depends on the district court you are filing your case before. The case load and infrastructure a court has, are factors to consider. A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude.

According to the Negotiable Instrument (Amendment) Act, 2015, a cheque bounce case can be filed in a court within whose local limit of jurisdiction is the bank to which the cheque is presented is situated.

Yes, you can recover interest and legal expenses from the drawer of the dishonoured cheque in a summary suit for recovery of money, but not in the proceedings initiated under Section 138 N.I. Act. However, under Section 138 N.I. Act the award may be higher than the cheque amount.

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 defence. 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 no outstanding financial liability.

A cheque bounce case (criminal complaint) is filed in the Court having jurisdiction over the area where the cheque in question in bounce

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.

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. Typically, it could take around 2-3 years for a cheque bounce case to be resolved.

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.

LEGALTAX has a pool of 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 LEGALTAX 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.

Following are some of the situations in which a cheque can bounce:
  • • Insufficient funds in the account of the person issuing the cheque
  • • Unmatching signature on the cheque
  • • Post dated cheque i.e. the date mentioned on the cheque is yet to come
  • • Stale cheque i.e. the cheque is presented to the bank 3 months after the cheque was issued
  • • When the payment is stopped- if the drawer asks the bank to stop the payment and not to pay for cheque already issued
  • • Difference in amount in words and number
  • • Disfigured or Damaged cheque- a cheque will be dishonoured if it is torn, damaged or not in a good condition or has some details not clearly visible

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.

If you don't file a complaint within the stipulated 30 days, the case will lapse and you will not be able to prosecute the drawer any more. However, in case you have a genuine reason because of which you could not file the complaint in the given time, the court may grant you an extension.

The criminal complaint can be filed if the following ingredients for the offense of cheque bouncing are present:
  • • The cheque must have been issued fulfill some legally enforceable debt or any other liability.
  • • The cheque must have been presented either within a period of six months or within the period of its validity whichever is earlier.
  • • The payee is obligated to issue a legal notice in writing to the check issuer within a duration of 30 days.
  • • The issuer must have failed to pay the amount to the payee within the duration of 15 days from the date of receiving the above mentioned period.

If a company committed the offense of cheque bounce, every single individual who was involved in the discharge of liability along with the company will be parties to the offense. Hence, both individuals and the company will be served the legal notice and subsequently will be parties to the criminal complaint.

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