How To Escape From Cheque Bounce Cases ?91-8877001993

Written by:

Adv Anshul Jain

Updated: 29-03-2024

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In India, cheque bounce is a criminal offence as provided under Section 138 of the Negotiable Instruments Act. A cheque may get dishonoured due to various reasons including insufficiency of the balance in the respective account or due to any discrepancy in the cheque. As per the provisions of the Act, in case of a cheque bounce the drawer would have to compensate with double the amount mentioned in the cheque or 2 years of imprisonment or both in severe cases.

What happens after a cheque gets bounced ?

Insufficient Funds:- If the amount in the account is lower than mentioned in the cheque, it will be deemed as dishonoured.
Legal Notice:- The payee in the above situation will have a period of 30 days from the date the cheque got bounced to issue a legal notice or warning to the drawer.
Reply to the Legal Notice:- The drawer/ issuer of the cheque will have to send a reply to the legal notice within a period of 15 days from the date he received the notice, i.e. if he wishes to sort the issue amicably or return the money, etc based on the circumstances of the case.
Initiate the Legal Proceedings:-In case, the payee is satisfied with the reply from the drawer/ issuer, he may decide to rest the case there and sort the issue with the drawer amicable, however, if the drawer does not send a reply to the legal notice or sends a satisfactory answer, the payee then has the right to initiate legal proceedings and file a petition in the Court.

In What Conditions Could One Escape a Cheque Bounce Case ?

Security Deposit Defence:- When the said cheque has been issued as a security and not a deposit, such case would not fall under the ambit of Section 138, however the burden of proof to prove the same shall lie on the accused.
Unaccounted loan:- Cheques Bounces in cases of unaccounted cash transactions may not fall under the ambit of Section 138.
Disputed Signature:- The accused could question the validity of the cheque in case the cheque got invalidated due to discrepancy in the signature on the cheque.
The Option of Stop Payment:- The situation where a cheque gets dishonoured as the drawer requested to “stop payment”, in spite of the fact that the funds are sufficient in the respective account, the payee could claim that it was the external factors due to which the payment was withheld.
False Case:- In case one has been falsely accused in a cheque bounce case, he or she has the right to counter-sue the other party. The charges would include criminal action, defamation as well as compensation for losses.

Summing up, it is advised to take the case of cheque bounce seriously. It is advised to seek immediate assistance from an experienced cheque bounce lawyer who could help you protect your rights and deal with the legal complexities at their initial stage.

With the team of lawyers at Sharks of Law, who boast of their successful record in dealing with matters related to both civil as well as criminal laws, especially in the cases of cheque bounce, whether you wish to file a case of cheque bounce or are defending one, you will be provided with the timely and strongest defence.

FAQs

How should I defend myself in a cheque bounce case?

Answer: Defending a cheque bounce case would require careful considerations, which shall include negotiations with the other party, verifying the facts of the charges, finding loopholes if any, or any other defence as per the facts of your case. The lawyers at Sharks of law could offer you appropriate legal counsel as per the facts of your case.

The cheque I issued bounced due to insufficient funds. What should I do ?

Answer: As cheque bounce in India is a criminal offence under the NI Act, immediate legal counsel is advised. You should contact an experienced cheque bounce lawyer to understand the legal defence you may avail or any other options available. .

What kind of legal defences are available in the event of a cheque bounce ?

Answer: Some of the legal defences one may avail in defence of cheque bounce include- proving the lack-of-intent for the offence, disputing the validity of the debt or to negotiate settlements. It is, however, advised to seek legal guidance from experienced lawyers at the Sharks of Law to formulate appropriate strategy for your case.

Is there any time limit to send a reply to legal notice in the event of cheque bounce ?

Answer: Specific deadlines are there for responding to a legal notice in case of cheque bounce. Generally, it should be from 15-30 days. In order to avoid further complications in the matter, it is advised to send the reply within time limit, while consulting with an experienced advocate.

Email:-helpdesk@sharksoflaw.com

Help Desk:-+91-88770-01993