Read how to escape from a cheque bounce case in India- defend a cheque bounce case through a cheque bounce case lawyer. Know how to deal with a false cheque bounce filed under Section 138 of the Negotiable Instrument Act.
When borrowers cannot pay promised interest or principal on time, creditors can initiate steps to recover the debt. Debt recovery laws determine the process by which recovery proceeds. the Debts Recovery Tribunals (DRTs) were set up under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 to help banks and financial institutions recover their dues speedily without being subject to the lengthy procedures of usual civil courts. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 went a step further by enabling banks and some financial institutions to enforce their security interest and recover dues even without approaching the DRTs.
The law specefically in case of offence by companies is such that If the person committing an offence under section 138 of the Negotiable Instruments Act is a company, every person who, at the time the offence was committed, was in charge of and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly