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.