Legal Question in Banking Law in India

Re: bounced cheque

You may file a criminal complaint case against the issuer of the cheque under section 138 of Negotiable Instruments Act. This section provides for a punishment for a term extending to two years or payment of double the amount of the cheque.But before filing of a complaint, you are required to issue a demand notice, within 30 days of the dishonour of the cheque. This is an statutotary requirement. If the issuer of the cheque fails to comply with the demands raised in the notice, then you are entitled to file a complaint case in the designated courts.This is an effective way to recover the cheque amount. Alternatively, you can file a summary suit for recovery, based on the same cheque against the person under order 37 of the Code of Civil Procedure. You have two options to go with and both can also be proceeded simultaneously. FIR can be filed at the police station under the jurisdiction you reside or where your bankers are.

Note: The above advice is based on the facts and circumtances mentioned and as per the Indian laws.It is also advised that one should always consult an attorney giving out all the relevant details.

Navin Kumar, Partner, Nashree Associates, Advocates. Litigation cell: 6, Ist Floor, Bengali Market, New Delhi-110001. Email:[email protected]

Re: bounced cheque

You send a notice to the drawer within 30 days from the date of bouncing of the cheque without any delay and approach a good lawyer to handle the case.