How To File A Cheque Bounce Case In India
Cheque bounce is a matter of serious concern in financial transactions as delays the transfer of money causes harassment to the aggrieved and might also come in the way of important deals and might eventually cause the aggrieved a lot of loss.
Cheque bounce could take place due to a variety of reasons. There might be some discrepancy in the cheque, there might be insufficient funds in the person’s account who issued the cheque. It might also be possible that the drawer has instructed his bank to not entertain the cheque. The aggrieved can legally proceed against the person who issued a cheque by filing a cheque bounce case against the drawer.
Cheque bounce or dishonor of cheque is a serious offense in India punishable with fine or imprisonment or both under section 138 of the Negotiable Instruments Act. In certain conditions, say in a situation when the amount mentioned on the cheque is large, in that case, a case of cheating can also be filed against the person who signed the cheque (also called the ‘’drawer”) under section 420 of the Indian Penal Code. Following documents are required to file a cheque bounce case:
1) Original cheque and return memo
2) Copy of notice and original postal receipts.
3) Evidence affidavit.
The case could be filed by the person himself or his power of attorney. First of all, a legal notice must be sent to the drawer within thirty days of cheque bounce. If the drawer does not pay the amount within fifteen days from receiving the notice, then the aggrieved can file a case against him. The case should be filed where the cheque was submitted.
In order to make his case, the payee must have evidence and also, the cheque should not have been issued as a security at the time. Also, a case of the materially altered cheque is not entertained. So, the person filing the cheque must make sure that he is not making any of the above mistakes.