Understanding Cheque Bounce Cases: Procedures for Filing Complaints and Court Proceedings

Cheque Bounce Case
MSME Case Procedures

Cheque bounce cases is filed when an offence under Section 138 of the Negotiable Instruments Act is committed by the defaulter. A cheque is essentially a bill of exchange, payable on demand to the recipient named on the face of the cheque.

Cheque Bounce Cases

Cheque bounce is a serious offence under Section 138 of the Negotiable Instruments Act. A cheque is essentially a bill of exchange, payable on demand to the recipient named on the face of the cheque. If a cheque is dishonored for any reason – whether due to insufficient funds or some other mistake – this dispute is considered a criminal offense, known as “cheque bounce”.

There are a number of reasons why a cheque may be dishonored and subject to a lawsuit. For example, an insufficient balance in an account might cause the cheque to bounce, or there may have been a clerical error in entering the underlying information. In addition, there may be issues with authenticity or fraud that this dispute could cause problems for both banks and consumers.  

Regardless of the reason why a cheque has been dishonored, it is essential to understand your legal rights and obligations when dealing with cheques. If you have suffered from bounced checks or suspect that you may be at risk for wrongful dishonor in the future, it is important to seek legal advice so that you can take action as needed. With effective representation on your side, you can help ensure that your rights are protected and that justice is served.  

Filing Cheque Bounce Complaints against the defaulter

An Individual or a company who gives the cheque is a drawer and one who receives it is a drawee. The cheque is valid for three (3) months from the date of the cheque. Here are a few points from the Aran Law Firm the Cheque Bounce Lawyers in Chennai.  

Procedures to file the cheque bounce complaint

  1. If the check issued by the debtor is returned from the bank, then the drawer of the cheque must inform the drawee within 30 days of the date the cheque is returned. Always keep the memo received from the bank with the reason for cheque bounce (vital document to be filed if it goes to court)  
  2. After the receipt of bounced cheque, either the drawer or his lawyer must formally send a legal notice to the drawer within 30 days of the cheque has been returned. 
  3. In the letter or the legal notice, it is to be mentioned that the amount has to be paid within the time limit of 15 days from the date of legal notice received by the drawer or appropriate legal action will be taken under N.I. act. 
  4. After sending the notice  the opposite party, the drawer must preserve the delivery of proof. 
  5. If the debtor (Issuer of cheque)  still fails or refused to make the payment then the drawee can file the case before the proper jurisdiction with all available documents furnished before the court.  

Documents required to file before the court

  1. Cheque with the returned memo issued by the bank with the reason for dishonour of cheque 
  2. Complaint before the judicial magistrate under the provisions of Criminal Procedure Code 
  3. Photocopy of the Legal Notice 
  4. Documents proving the nature of transactions (promissory note, invoice bills and etc.,) 
  5. Bank Statement for transfer of money in case of promissory note 
  6. Affidavit of the Complainant 
  7. Legal Notice issued to the Debtor 
  8. Reply notice received if any  

Cheque Bounce Cases Procedures in the court 

  • After the successful filing the complaint the court will hear the matter and if it finds that the complaint has prima facie case, then the accused/respondent will receive a summons.  
  • After the receipt of summons, the accused must appear before the court and he/she shall either accept or reject the allegation of the complaint  
  • If the accused person continues to remain absconded then the court may issue a bailable warrant on a first instance and non-bailable warrant to arrest the accused if he/she continues evade the court summons.  
  • After the appearance of the Accused before the court, he will be served with the copy of documents and allowed to defend the case.  
  •  In some cases, the court may advice the parties to settle the dispute amicably before the Lok Adalat.  
  • In case of no settlement, the complainant will be summoned to produce all the original copies of the evidence and witness in court in support of the complaint filed before the court  
  • The Accused shall also be given an opportunity to submit his side of argument.   
  • Both Complainant and Accused will be subject to chief and cross examination by their respective counsel.  
  • Finally, the court will hear the arguments of the counsels before pronouncing its judgment.  

We serve the needs of our clients in all criminal litigation area and represent them whenever needed. Call us for any urgent help or guidance.

Legal Disclaimer: The information contained in this blog post is for general information and educational purposes only. Nothing contained in this blog post should be construed as legal advice from The Aran Law Firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter.

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