What actions can I take if a cheque bounces?

After the expiry of 15 days of issuing the cheque bounce notice, the payee can initiate legal action against the drawer. The payee should register a complaint under Section 138 of the Act. Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit.

How do you defend a 138 case?

If the accused or the drawer of the cheque, proves that the cheque issued, was not in discharge of any debt or liability, while issuing the cheque, and it was just given security deposit, hence it does not attract the offence under the Section 138, of the Negotiable Instruments Act.

What will happen if a cheque gets dishonored?

According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. The payee has to sent the notice to the drawer with 30 days from the date of receiving “Cheque Return Memo” from the bank.

Who is responsible if a cheque bounces?

If the Company has failed to reply or pay the amount of the cheque within 15 days from the legal notice, the payee can then file the complaint in a court of appropriate jurisdiction, within a stipulated time period of 30 days. The complaint should be accompanied by the following documents: An affidavit.

What happens if a Cheque is Dishonoured?

When a cheque is dishonoured, the drawee bank immediately issues a ‘Cheque Return Memo’ to the banker of the payee mentioning the reason for non-payment. The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time.

How do you escape a cheque case?

4. File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.

What is the maximum punishment for cheque Dishonour?

According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.

When a cheque is returned Dishonoured it is recorded in?

The dishonored cheque is shown in the debit column of the bank statement.

What is the court fee for cheque bounce case?

Court fees is 10,000/- for 5 lakhs. The court in who’s jurisdiction you are to file the case is the branch area you have deposited your cheque. Do send him a statutory notice before filing the complaint within 30 days of the cheque being bounced.

What causes a cheque to be Dishonoured?

Cheques are dishonoured by the bank if there are insufficient funds, a signature mismatch, overwriting or a stale date.

How would you deal with a false cheque bounce case?

File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.

How do you fight a false cheque bounce case?