Re: cheque dishonour

Section 138 read with 142 levies a imprisonment upto 2 years and fine.

Re: cheque dishonour

If a cheque is dishonoured, the payee is entitled to initiate criminal prosecution of the drawer under Section 138 of the Negotiable Instruments Act after giving him statutory notice of demand.

The lender may also choose to file a suit for recovery against the borrower.

Keeping in view the amount involved, legal course of action may be costly. You may try for an amicable out of court settlement and avoid litigation.

Re: cheque dishonour

you can within limitation file a case u/s 138 NI Act.

Re: cheque dishonour

normal punishment is minimum 1 year and maximum 2 year plus fine

Re: cheque dishonour

As per Section 138 of the NI Act, upon dishonour of cheque, such person has committed an offence which is punishable with imprisonment of term extended to 2 years and fine extended to twice the amount of the cheque. Further upon dishonour of cheque, you have to send a demand notice and after that you can proceed to file a criminal complaint before appropriate court. Other option available to you is to file a suit for recovery with civil court.

Hope the above answer your query.