What is a cheque under Negotiable Instruments Act?

The definition of cheque is an instrument, most commonly used means of making payments in the commercial and business world. It is defined under Section 6 of Negotiable Instruments Act as a bill of exchange, issued by the drawer to the banker. Cheque is issued with the purpose of guiding the banker to pay a certain sum of money when demanded by the specific person. A cheque is a tripartite transaction involving at least 3 parties one of them always being a bank. A cheque can be crossed, open, post-dated, anti-dated, bearer or order cheque. A cheque needs to be duly signed by the drawer and the drawee must be certain to prevent misuse of such cheque.

Read More

When is a cheque said to be bounced or dishonoured?

A cheque is said to be dishonoured or bounced when it is presented for payment in the bank but is not paid owing to some reason. Dishonour of cheque can be because of many reasons. It is both a criminal and civil offence and proceedings in a cheque bounce case can be initiated with the help of best cheque bounce lawyers in India.  

Read More

What is the validity of cheque in India?

At present, the validity of cheque in India is 3 months. The validity of a cheque means the time period within which it can be presented to the bank to receive the payment or amount as specified in the cheque. A cheque cannot be encashed after the lapse of the time period of 3 months from the date of issue of cheque.

Read More

What is a cheque return memo?

When a cheque is dishonoured, the banker or the bank issues a memo to the drawer or issuer of the cheque mentioning: Reason for dishonour of cheque Date of cheque bounce Cheque number and date of issue of such cheque Such memo is called a cheque return memo and is a very important document in case a legal action is necessary. It serves as a notice to the drawer of the cheque.

Read More

What are the reasons for a cheque bounce?

There common reasons for cheque bounce in India are many. The list is not exhaustive in nature. The reasons can be: Insufficient funds in account Overwriting on cheque Stop payment instructions (by drawer or Court order) Illegible or incomplete signature of drawer Not properly dated Mutilated cheque Mismatch in Account Number No clarity in amount In case your cheque bounces, it is advisable to consult a good cheque bounce lawyer in India.

Read More

Can I send the cheque again to the bank if it has bounced once?

You can send back the cheque to the Bank even if it has bounced one. Dishonour of cheque once or twice does not curtail your right to represent to get it encashed.  There is no restriction regarding the number of times a cheque can be presented. Every subsequent representation and dishonour gives rise to fresh cause of action for filing complaint. Thus, if you represent the cheque and it is dishonoured again, it turns the tables in your favour giving you additional cause of action to file a complaint under S/138.

Read More

What is Section 138 of Negotiable Instruments Act?

Section 138 of Negotiable Instruments Act relates to dishonour of cheque i.e. when is a cheque returned as unpaid on being presented to the banker. Section 138 of the Negotiable Instrument Act, 1881 can be divided into the following elements- Cheque is drawn by a person on account maintained by him; Such cheque is issued for discharge of a legally enforceable debt or liability; Such discharge can be in whole or in part; To any other person to whom such payment is to be made; Such cheque is returned by the bank as unpaid because of any reasons aforementioned; Such person or drawer is deemed to have committed the offence of “dishonour of cheque”. If you receive a notice under Section 138 of Negotiable Instruments Act, do not panic and hire an expert cheque bounce lawyer online.  

Read More

What are the legal remedies available if your cheque is bounced?

A cheque is the easiest means of payments in the business world. However, often innocent people are fooled by giving them cheques issued on bank accounts which have insufficient funds. In this condition, cheque when sent to the bank, bounces or is dishonoured. The legal remedies available in case of cheque bounce are: Action under Section 138 of Negotiable Instruments Act: In the event of expiry of notice period of 15 days, the payee has the right to file a criminal case within 30 days of such expiry of notice period in a court of competent jurisdiction with the help of experienced cheque bounce lawyers in India. Civil Action as Summary Suit: This remedy is available for a longer duration of time. You can file a summary suit for debt recovery in India for the amount of cheque along with interest and legal expenses. Notice can be issued for filing of the summary suit in regards to recovery of money. Criminal Action under Section 420 IPC: This remedy is in the nature of criminal suit for the offence of cheating under Section 420 of Indian Penal Code (IPC) within 3 years from the date of issue of cheque. The remedy is not directly related to a cheque bounce case. It is only applicable if you can prove that the drawer cheated you and had dishonest intention to cheat. It is but an additional remedy in cases where cheating forms a part of the offence. An expert cheque bounce attorney in India can guide you the best in regards as to the action you must take.

Read More

Can you file a case for cheque bounce after the lapse of validity of cheque?

No, you cannot file a case for cheque bounce on ground of lapse of validity of cheque. It is your fault if you fail to present a cheque to be cashed within 3 months of its validity. Default on your part does not give rise to a cause of action in dishonour of cheque. A cheque that has never been presented to the bank cannot be dishonoured. You may request the drawer to issue a fresh cheque if your failure to present it is reasonable. However, there exists no legal right to demand a fresh cheque.

Read More

How long do I need to wait after issuing notice to the drawer of cheque to initiate Court proceedings?

After giving notice to the drawer of cheque, you need to file a complaint case with the help of experienced cheque bounce lawyers in India against the drawer under Section 138 of Negotiable Instruments Act within 30 days from the expiry of notice period. The notice period is of 15 days. Thus, to put it in a simple way, you need to file a complaint case against drawer within 45 days (15+30) from the date of issue of notice. Failure to do so will lead to a loss of remedy under procedure of Section 138 of N. I. Act. However, there exists an alternate remedy to file a summary suit (civil legal proceeding) for recovery of money and to initiate proceedings under Section 420 of Indian Penal Code within 3 years from the date of issue of cheque. It is advisable to consult the best cheque bounce advocate to know the appropriate remedy available to you in your case.  

Read More

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 by good cheque bounce advocates in India.

Read More

What is the limitation period for filing case under Section 138 of Negotiable Instruments Act?

Under Negotiable Instruments Act the limitation period is 30 days from the expiry of the notice period. Limitation period is the time within which you need to file a complaint case, failing which the right to seek that remedy lapses. You can still file a case for cheque bounce after the lapse of 30 days if you can provide with a reasonable justification in regards to the delay. The limitation period to send a notice on receiving information as to dishonour of cheque is 30 days. Thus, to sum up the timeline is:   Step 1: Dishonour of Cheque and receipt of information from banker. Step 2: Send a notice within 30 days of receipt of such information. If drawer takes steps and you receive your dues before expiry of notice period, you can escape legal proceedings. Step 3: Lapse of notice period in 15 days. Step 4: If no action is taken by drawer, you can now file a criminal case against him with the help of top cheque bounce lawyers in India.   It is pertinent to note that you have a right to represent the cheque to the bank even if it is dishonoured once.

Read More

Can I file a case after the lapse of limitation period?

Yes, you can file a case under Negotiable Instruments Act after the lapse of limitation period i.e. 30 days after the expiry of notice period. You need to justify the delay with a reasonable reason to the satisfaction of the court with the help of best cheque bounce advocates in India.

Read More

Can someone take legal action against me if the cheque I issued bounced?

Yes, there can be a legal action against you if the cheque you issued bounced. It is advisable to issue cheque with the correct date and to ensure that you have sufficient funds in your account on that particular date. If your cheque was dishonoured and you have received a notice or cheque return memo, do not panic and hire the experienced cheque bounce attorneys online with just a click, through our website.  

Read More

Can I be arrested in a cheque bounce case?

Yes, you can be arrested in a cheque bounce case. The provision ensures that innocent people are not fooled by unscrupulous people in case of payments and that they do not escape or flee away from the country. Arrest can be to ensure presence in a Court of law or others. There is a sigh of relief for you as you can be out on bail if you assure your presence in Court when demanded. Dishonour of cheque is a bailable offence. A good criminal lawyer in India can help you get a bail.

Read More

What is the bail amount for cheque bounce case?

The bail amount for a cheque bounce case varies from case-to-case basis and can be best advised by the best cheque bounce attorneys in India. However, certain parameters are kept in mind to give you an approximate idea: The amount for which the cheque was issued; The financial status of the drawer; The number of similar cases pending against the drawer in the same transaction or transactions close in time to each other; The expertise of your lawyer to convince the authorities; (Thus, it is important to hire a best lawyer for cheque bounce matters).

Read More

What is the penalty for a cheque bounce case under S/138 of Negotiable Instruments Act?

The penalty for a dishonour of cheque case under Section 138 of N.I. Act is: Imprisonment upto 2 years; or Fine upto twice the amount of cheque value; or Both fine and imprisonment. It is pertinent that you consult the top cheque bounce advocates in India to escape the punishment.

Read More

Can there be both civil and criminal proceedings against me in case of cheque bounce?

Yes, there can be both civil and criminal proceedings against you 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 S/420 of IPC(Indian Penal Code) within 3 years from the date of issue of cheque. It is advisable that you consult an expert cheque bounce lawyer or a criminal litigation lawyer in India to defend your case.

Read More

How to defend your cheque bounce case in India?

You can escape from a cheque bounce case by hiring the best cheque bounce attorneys in India online to defend your case. If you can prove that the cheque issued by you was forged, or delivered by undue influence, cheating, force or fraud you can easily escape the case. Another ground for defense in cheque bounce case can be that the cheque was not issued for discharge of a legally enforceable debt or liability, but merely as a security or advance or a loan. If you can nullify any of the essentials of Section 138 of Negotiable Instruments Act aforementioned, you can escape the liability. Further, a cheque bounce can be justified on various grounds, best known to your advocate according to the facts of your case.  

Read More

Is there any special rule for dishonour of post-dated cheques?

There exists a special rule for dishonour of post-dated cheques. Post dated cheques can be issued for any purpose i.e. to secure a loan, to serve as an advance or security or for discharge of a legally enforceable debt. However, only if the cheque was issued for discharge of a legally enforceable debt, can it be said to be dishonoured or bounced. Thus, it must be proven that the date on which the cheque was issued, there existed a legally enforceable debt or liability due to be paid to the payee by the drawer. If there existed no such debt on the date of issue of cheque, but comes into picture post the date of issue but before the date of payment, there can be no offence of a cheque bounce case. This stands as a very strong defense in any cheque bounce case. To save yourself from the punishment or arrest it is advisable that you consult expert cheque bounce lawyers online who can defend your case.  

Read More

In what cases cheque bounce does not amount to an offence?

Cheque bounce is an offence under S/138 of Negotiable Instruments Act (N.I. Act). However, there exist a few exceptions to it, namely: If the cheque is forged; (Section 464 Indian Penal Code) If the cheque cannot be traced back to the cheque book number; If the cheque was delivered by force, fraud, undue influence, coercion or misrepresentation; If the cheque was issued by a person of unsound mind or lunatic or idiot; If the drawer becomes insolvent; If the cheque was not issued for discharge of a legally enforceable debt or liability but merely as a security, advance or loan. It is important for you to consult the expert cheque bounce advocates to defend your case to escape the legal consequences.

Read More

Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!

Most Consulted Cheque Bounce Advocates

Choose from our most consulted lawyers across India and get instant legal advice.

Top Consulted Cheque Bounce Advocates

Choose from our most consulted lawyers across India and get instant legal advice.