What do you mean by Cheque Bouncing? Why Do you need Cheque bounce lawyer in Delhi?
A Cheque bounce is an offense under Section 138 of The Negotiable Instruments Act, 1881 which is punishable with a fine that can extend to twice the amount of the Cheque or imprisonment for a term not more than two years or both. But don’t worry contact – Cheque bounce lawyer in Delhi to cure your problem.
When a Cheque is presented by the payee to the bank for payment and the Cheque is returned unpaid by the bank with a memo of insufficient funds or other situations then the Cheque is said to be bounced.
When a Cheque is bounced then the bank immediately issues a ‘Cheque Return Memo’ to the banker of the payee with the reason for the non-payment. The payee’s banker then gives the bounced Cheque and the memo to the payee.
Then the payee can resubmit the Cheque to the bank within three months of the date on the Cheque if he believes that it will be honored the second time. However, if the payment fails then the payee has the right to legally prosecute the drawer, with the assistance of Cheque bounce lawyers in Delhi.
The payee may legally sue the defaulter for Cheque bouncing only if the mentioned amount in the Cheque is towards discharge of a debt or any other liability of the defaulter.
What Legal actions to be taken on Cheque bouncing?
Cheque bouncing is a criminal offense and is punishable by imprisonment up to two years or with a fine or both, under Section 138 of The Negotiable Instruments Act, 1881. If you want to proceed legally then we can help you with the finest Cheque bounce lawyer in Delhi for your legal proceedings and can give legal guidance.
First, the drawer should be given a chance to repay the Cheque amount immediately in the form of notice in writing. The payee has to send the notice to the drawer within 30 days from the date of receiving the “Cheque Return Memo” from the bank.
The notice should mention the Cheque amount which has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer. 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.
How to file a complaint against a bounced Cheque?
The complaint should be registered in a Magistrate’s court within a month of the expiry of the notice period.
Adv Neha Batra is a Cheque bounce lawyer in Delhi who is well versed and experienced in this area of practice to proceed further in the matter and will guide you legally. To use the provisions of Section 138 of the Negotiable Instrument Act, 1881 certain conditions have to be fulfilled.
For that, you will need an Advocate who is experienced in this field of work and we have the best Cheque bounce Lawyer for your help in this matter.
Various situations that result in Cheque Bouncing /Dishonourment:
- Insufficient balance in account – There should be sufficient funds for the Cheque to be approved, if there are insufficient funds in the bank account of the payer then the bank will return the Cheque to the payee and issue a memo stating insufficient funds.
- Expired Cheque – The payee must present the Cheque within three months after the drawer issues the Cheque, if it is not presented within the said time then the Cheque bounces.
- Mismatched signature – If the drawer’s signature is not there or is unclear with the bank’s data then the Cheque will bounce.
- Damaged Cheque – If the Cheque is damaged in any manner or is disfigured and not clear, the Cheque will be rejected.
- Mismatched digits or amounts – If the figures and words of the amount mentioned in the Cheque are mismatched, it will be rejected.
- Overwriting on Cheque- If there is overwriting in the signature or amount of the Cheque then it will be rejected/bounced.
Frequently asked questions
Which court has jurisdiction to entertain a complaint of dishonor of Cheque?
The complaint has to be filed where the drawer maintains his account. For example, if the drawer’s bank account is in Dwarka then the Dwarka District Court has the jurisdiction. We would suggest you to take help of best Cheque bounce lawyer in Delhi to file a complaint.
What legal action can be taken against the dishonourment of Cheque?
The payee can file a complaint against the drawer under Section 138 of The Negotiable Instruments Act, 1881.
Is Cheque bouncing a criminal offence?
Yes, Cheque bouncing is a criminal offence.
In which circumstances Cheque bouncing does not amount to an offence?
The circumstances in which a Cheque bouncing does not amount to an offence are numerous in number. Some of the instances are:
- When the Cheque is given as a
- If the Cheque is found mutilated.
- When the Cheque is issued to a charitable trust as a donation or gift.
- If the Cheque is given as an advance.
What do you mean by Cheque return memo?
When a Cheque is dishonoured, the banker issues a memo to the drawer mentioning the reason for dishonour of cheque, date of cheque dishonour, Cheque number and date of issue. This memo is called a Cheque return memo.
How many times a Cheque can be presented after first dishonourment?
A Cheque can be presented again even after it is dishonoured once, there is no restriction as how many time a Cheque can be dishonoured.
Is Cheque bounce is punishable offence?
Yes, Cheque bounce is a punishable offence. The drawer of the Cheque can be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the Cheque, or with both. Connect with Cheque bounce lawyer in delhi to consultant your case.
Can a single complaint be filed for dishonourment of several Cheques?
A person can file a single Complaint under Section 220 of Criminal Procedure Code, 1908 for dishonour of several Cheques.
Can an accused be discharged in a Cheque bounce case if the Cheque amount is deposited by him in the bank account of the Complainant?
Yes, the Accused can be discharged in a Cheque bounce case if the Cheque amount is deposited by him in the bank account of the complainant.
Whether a complaint under Section 138 of The Negotiable Instrument Act 1881 for dishonour of cheque be amended?
Yes, the Hon’ble High Court of Rajasthan in the matter of Oswal Finlease Private Limited Vs. State of Raj & Anr held that no person could be penalized for his bonafide mistake, hence the Complaint under Section 138 of the Negotiable Instrument Act can be amended.
If I want to file a complaint against the Cheque bouncing, what is the first step to follow?
First, you have to choose a law firm which can help you further in this matter, LAW NATURALE has best Cheque bounce consultants and lawyers in Delhi. For more information, mail to lawnaturale@gmail.com.
Whether the Court can close the proceedings of Cheque bounce and discharge the accused on satisfaction that the Cheque amount with assessed costs and interest is paid?
Yes, as per the principle laid down by the Hon’ble Supreme Court of India in the matter of M/s Meters and Instruments Pvt. Ltd. Vs. Kanchan Mehta ,where the Cheque amount with interest and cost as assessed by the Court is paid by a specified date, the Court is entitled to close the proceedings in exercise of its powers under Section 143 of the Negotiable Instrument Act read with Section 258 Criminal Procedure Code.
What if the bank dishonoured a cheque by mistake?
If a cheque is dishonoured by the bank by mistake then the bank will have to reimburse the cheque and return back charges to the customer.
Can there be both civil and criminal proceedings in case of cheque bounce?
Yes, there can be both civil and criminal proceedings in a cheque bounce case. Civil proceedings can be instituted either under Section 138 of Negotiable Instruments Act or as a summary suit on lapse of the 30 day period. Criminal proceedings can be instituted under Section 420 of Indian Penal Code within 3 years from the date of issue of cheque.
What are the documents required to file a Cheque bounce case in India?
The documents required to file a cheque bounce case in India are:
- Copy of the notice served on drawer
- Proof of service of notice, either courier receipt or receipt of registered post A.D.
- Original Cheque on record
- Cheque return memo issued by the banker to the drawer
- Proof of existence of legally enforceable debt or liability (not required in case of a summary suit).
Other documents depend on a case-to-case basis and you can receive best guidance through Cheque bounce legal consultants/lawyers in Law Natruale (Law Firm) in Delhi.