CHEQUE BOUNCE CASE
Cheque bounce which comes under Section 138 Negotiable Instruments Act, which is not a criminal offence but can lead to criminal. In case of cheque bounce, you would need a banking lawyer India (cheque bounce lawyer India) to serve the legal notice to the opposite party.
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice. to any other provision of this Act, 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:
Process to be followed in a cheque bounce case:
a) If a cheque is bounced, a notice has to be sent to the opposite party within 30 days from the date of memo accompanying the bounced cheque is received from the Bank.
b) The notice by the holder of the cheque should claim the amount for which the cheque has been bounced, providing 15 days to settle the matter.
c) The opposite party has 15 days from the receipt of the notice to settle the matter and no cause of action arises till the expiry of these 15 days or if paid within this specified period.
d) After the completion of said 15 days, if the opposite party does not settle the matter or ignores the notice, then the holder of the cheque may file a criminal complaint before the appropriate court within 30 days of the expiry of said 15 days.
e) If it is beyond 30 days period, the delay can be ignored by the court on sufficient cause being shown.