Frequently Asked Questions
Check out the Frequently Asked Questions about "Cheque Bounce Case".
A cheque bounce case occurs when a cheque issued by an individual or entity is dishonored or rejected by the bank due to insufficient funds, a closed account, or other issues. Legal action can be taken against the drawer (the person who issued the cheque) under Section 138 of the Negotiable Instruments Act, 1881.
If a cheque bounces, the person who issued the cheque may face legal consequences, including penalties, fines, or imprisonment. The payee (the person who receives the cheque) can file a criminal case under Section 138 of the Negotiable Instruments Act.
You have up to 30 days from the receipt of the cheque return memo (which informs you of the bounce) to send a legal notice to the drawer. After sending the notice, if the payment is not made within 15 days, you can file a case in the magistrate court.
To file a cheque bounce case, you need to:
1 Send a legal notice to the drawer within 30 days of receiving the bounced cheque.
2 Wait for 15 days for the drawer to repay.
3 If no payment is made, file a complaint in the magistrate court under Section 138 of the Negotiable Instruments Act.
Yes, you can file a cheque bounce case against a company. However, you must ensure that the cheque was issued by an authorized representative of the company, and legal action is taken against the companys directors or officers.
Yes, a bounced cheque case can be settled out of court through negotiation or mediation between the parties. If both parties agree to a settlement, the case can be withdrawn, but an official settlement agreement needs to be in place.
If the accused is found guilty of issuing a dishonored cheque, they can face imprisonment of up to 2 years, or a fine that can be twice the cheque amount, or both. The specific penalty depends on the courts decision.
Yes, even if only part of the payment is missing or if the cheque amount is not fully paid, you can file a case for cheque bounce. The cheques dishonor still results in legal action, even if partial payment is involved.
Yes, the drawer (the person who issued the cheque) can provide a valid defense in court. Common defenses include: insufficient evidence of dishonor, invalid or altered cheque, or the claim being time-barred.