Quick Answer: How Do You Fight A Cheque Bounce Case?

How many times a Cheque can be bounced?

Although the Reserve Bank of India states that such action can be taken only if cheques, valued Rs 1 crore or above, have bounced more than four times..

How long does it take to get the court Judgement on a Cheque bounce case in India?

around 2 to 5 yearsHow long does it take to get the court Judgement on a Cheque bounce case in India? If the case goes to court the judgement may take anywhere around 2 to 5 years to take effect. The legal recourse for cheque bounce cases is straightforward in Indian Law [under the negotiable instruments act].

Is bouncing check a criminal case?

While most bounced cheques occur simply because someone makes a mistake there could be legal ramifications. If you are accused of trying to defraud the person you have written a bad cheque to then you could be charged as a criminal.

Which Cheques are not accepted?

1) Insufficient funds: The cheque amount is more than the free balance available in the drawer’s bank account. 2) Irregular signature: The signature of the drawer on the cheque does not match the specimen signature available with the bank.

How do you defend a 138 case?

The cheque issued in respect of future liabilities not in existence as on the date of cheque would not attract prosecution Under Section 138 of N.I. Act. So even if security cheque is bounced the prosecution can be initiated and only defence is that there was no legally enforceable debt.

Which courts have jurisdiction to entertain complaints under Section 138 of the Negotiable Instruments Act?

INTRODUCTION. The Supreme Court (“Court”) has, in its recent decision in Dashrath Rupsingh Rathod v. State of Maharashtra & Anr.1, held that in cases of dishonour of cheque, only those courts within whose territorial limits the drawee bank is situated would have the jurisdiction to try the case.

What happens after a Cheque bounces?

If a cheque is Dishonored/Bounced: When a cheque is dishonored, the drawee bank immediately issues a ‘Cheque Return Memo’ to the payee mentioning the reason for non-payment such as insufficient funds, the incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, etc.

How can Cheque bounce case be overcome?

One can file a suit for recovery of the cheque amount along with the cost & interest under order XXXVII of Code of Civil Procedure,1908,(which governs the suit in summary trial) and can also file a criminal complaint u/s 138 of Negotiable Instrument Act for punishing the signatory of the cheque for having committed an …

How do you get bail in a Cheque bounce case?

Bail in cheque bounce is a matter of right of the accused as it’s a bailable offence. So you have to give an bail application through your advocate and have to give security as per the orders of the judicial magistrate.

What is the time limit for Cheque bounce case?

30 daysThe cheque should be returned due to insufficient funds. The notice should be given within 30 days of cheque bounce. The drawer has failed to make the payments within 15 days of Cheque bounce notice, legal action can be taken against him within 30 days.

Can you represent a bounced Cheque?

If you have the cheque and it does not state on the top “do not represent” you can take it back to your bank and ask them to “represent” it i.e. put it through the banking system again (pick the week of the month that you think money is most likely to be in the account).

How can I settle a Cheque bounce case in UAE?

In case the issuer of the bad cheque pays the fine, for cheques lower than or equal to Dh200,000, the complainant can go straight to a civil court to claim his dues.

How do you quash a Cheque in a bounce case?

If an accused wants the process under Sections 138 and 141 to be quashed by filing a petition under Section 482 CrPC , he must make out a case that making him stand the trial would be an abuse of process of court, Gunmala Sales (P) Ltd. v.

Will I go to jail if my check bounced?

If you don’t clear things up quickly, you may face civil (you have to pay fines) or criminal (you face potential jail time) penalties. Criminal charges can go on your criminal record, might eventually result in jail time, and are likely to come with higher fines.

When Cheque amount is more than actual debt Offence US 138 of NI Act is not made out?

In fact, the amount covered by the cheque was larger than the amount of debt or liability. The whole amount of debt or liability was lesser than the amount represented by the cheque. So, if the cheque for such an amount was dishonoured, the same will not be an offence under Section 138 of the Act”.

Who can send notice under 138?

This Notice is a Notice which shall be given by the unpaid Creditor (Payee) to the defaulting Debtor (Drawer) through an Advocate in case of dishonour of Cheque under section 138 of Negotiable Instrument Act.

How can I file a case for Cheque bounce?

If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period.

Can you send the Cheque again to the bank if it has bounced once?

Answer: Yes, you can present the cheque again in the bank for payment, even if it was dishonoured on the first occasion. However, it goes without saying that the cheque can be presented again in the bank only during the period of its validity. Normally, the period of validity of the cheque is 3 months.