What is the procedure for a cheque bounce case India?

Process of Cheque Bounce Suit

1. Filing a complaint before the Magistrate after the expiry of 15 days of receipt of cheque bounce notice by the drawer.
2. The payee/complainant has to appear before the court and provide the details of the case.
3. The drawer will appear and accept or deny the facts stated by the complainant.

What is the procedure after cheque bounce?

When a cheque bounces the first time, the bank issues a ‘cheque return memo’, stating the reasons for non-payment. The holder can resubmit the cheque to the bank within three months of the date on it, if he believes it will be honoured the second time. The other option would be to prosecute the defaulter legally.

How can I escape a cheque bounce case in India?

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.

How can I save myself from cheque bounce case?

U/S 138 YOU CAN PROTECT YOURSELF ONLY IF YOU HAVE PROOF THAT THE CHEQUE IS GIVEN AS SECURITY . SECURITY CHEQUE IS OUTSIDE THE PREVIEW OF CASE U/S 138 . IF YOU HAVE NO PROOF OF SECURITY THAN YOU ARE LIABLE TO BE PROSECUTED U/S 138 AND GO FOR THE BAIL AND APPOINT A LAWYER TO PROCEED.

How much time does a cheque bounce case take?

A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude. The penalty amount is twice the cheque amount which should be more than enough to cover your expenses and the accused may just want to settle in the meantime.

What is the punishment for cheque bounce in India?

The punishment for cheque bounce in India is – (i) imprisonment for up to 1-year (ii) Fine which maybe twice the amount of the cheque or both. Procedure and recourses in cases of Cheque Bounce

What to do if a cheque bounces after deposit?

Cheque Bounce Notice In case you have deposited a cheque that has bounced, send a letter (a demand notice) to the party that wrote the cheque (the drawer), threatening to initiate proceedings under the Negotiable Instruments Act (NI Act) if the amount due is not paid.

What is the punishment for cheque forgery in India?

The drawee then can proceed to file a cheque forgery case on the basis of the cheque bounce memo provided by the bank within one month from the issue of the notice of the cheque bounce. The punishment for cheque bounce in India is – (i) imprisonment for up to 1-year (ii) Fine which maybe twice the amount of the cheque or both.

When to file a cheque bounce complaint under negotiable instrument act?

Under Section 138 of the Negotiable Instrument Act, before filing a cheque bounce complaint, it is mandatory to send a legal notice along with the return memo number as a you within 30 days from the date of bouncing. If no reply is received within 15 days of the delivery of the demand notice, the payee can file the legal complaint within a month.