How do I defend the 138 NI Act?

How do I defend the 138 NI Act?

If the accused or the drawer of the cheque, proves that the cheque issued, was not in discharge of any debt or liability, while issuing the cheque, and it was just given security deposit, hence it does not attract the offence under the Section 138, of the Negotiable Instruments Act.

How do you defend a bounced cheque case?

File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.

What remedies are available in case of dishonor of cheque?

If found guilty, the defaulter can be punished with monetary penalty which may be twice the amount of the cheque or imprisonment for a term which may be extended to two years or both. The bank also has the right to stop the cheque book facility and close the account for repeat offences of bounced cheques.

What are the conditions that must be fulfilled in order to initiate proceeding under s 138 of the Negotiable Instruments Act 1881?

To constitute an offence under Section 138 of the Act, the following ingredients are required to be fulfilled:

• A person must have drawn a cheque on a bank account maintained by him.
• The cheque should have been issued for the discharge, in whole or in part, of any debt or other liability;

How long does a cheque bounce case take?

There is a statutory period of 15 days since the day the legal notice for cheque bounce is received by the defaulting party, to revert or take any necessary action.

How do you prove a security cheque?

Simply by exhibiting statement will show there was no debt due at the time of issuance of the cheque and therefore the cheque was misudsd. You can also attach your payment proof if complainant fails to bring the statement of accounts.

Who is responsible for Dishonour of Cheque?

A criminal liability on account of dishonour of cheque primarily falls on the drawer company and is extended to officers of the Company. The normal rule in the cases involving criminal liability is against vicarious liability, that is, no one is to be held criminally liable for an act of another.

What are the points you will cover while drafting a notice under Section 138 of the Negotiable Instruments Act 1881?

Section 138 of the Negotiable Instruments Act, 1881 lays down that any person found guilty of the offence of dishonour of cheque shall without prejudice to any other provisions of this Act, be punished with imprisonment for [a term which may be extended to two years], or with fine which may extend to twice the amount …