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How can we take Defence in cheque bounce case?
Here’s what you can do to defend a cheque bounce case: 1. Keep a copy of relevant documents: Precaution is always better than cure! Keep a copy of all the relevant documents that prove that a transaction has been made through a cheque you issued.
Can we file case against cheque bounce?
Yes, there can be civil and criminal proceedings against the issuer in case of cheque bounce. The civil proceedings can be instituted under Section 138 of the Negotiable Instruments Act, or criminal proceedings can be initiated by filing a complaint before the Magistrate.
What is Section 138 NI Act?
i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the …
How are court fees calculated NI?
Court-fee is 5\% of the amount of the dishonoured cheque, subject to a minimum of Rs. 200. If the value of cheque is more than Rs. 1 lakh but up to Rs.
What are the stages in cheque bounce case?
Five Important Elements of Cheque Bounce Case: Presentation of the cheque to the Bank. Returning the cheque unpaid by the drawee Bank. Payment demand notice issued to the drawer of the cheque. Failure of the drawer to make payment within 15 days of the receipt of notice.
What is the punishment for Section 138?
Section 138 provides that when the cheque is dishonored for insufficiency of funds or for any of the prescribed reasons, the one who is at defaulter can 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 both.
How serious is cheque bounce?
A cheque bounce is among the common financial offences which can land the issuer into legal trouble and damage his or her credit rating. The cheque is then returned unpaid or dishonoured. Repeat offences can have serious repercussions. The offender may be slapped with a huge bounced-cheque fee or even a prison term.
Is cheque bounce non bailable?
No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Further, the offence is non-cognizable so the police cannot arrest without a warrant.