In India, Cheque bouncing is a common problem that affects people’s finances in major ways. When you’re dealing with a dishonoured cheque, it’s important to know what your legal options are. 

If you are an Indian citizen and have been involved in a cheque bounce case, this article will walk you through every step of the legal process.

Notifying  a Legal Notice

Notifying the defaulter legally is the first step in handling a bounced cheque. The party receiving or holding the bounced cheque has thirty days from the date of notification to send a legal notice to the party who sent the cheque in accordance with Section 138 of the Negotiable Instruments Act, 1881. The notice should clearly state that the full amount of the cheque must be paid within fifteen days of its receipt.

Submitting a Grievance

After the 15-day grace period has passed without payment from the drawer, a complaint can be filed with the appropriate jurisdictional magistrate court. One month after the notice period has passed is the deadline for filing this complaint. Please ensure that you have all the required paperwork ready to file the complaint. This includes the bounced cheque, the original legal notice, an affidavit attesting to the dishonour of the cheque, a list of any witnesses, and any other pertinent evidence.

Note: You should talk to a baking advocate in Chandigarh, if you want more details about cases involving cheque bounces.

Legal Proceedings

The court will summon the drawer to appear in court once the complaint is filed. If they do not show up, an arrest warrant might be issued. Trials consist of evidence presented by both sides and a decision handed down by the court depending on the merits of the case.

Fines and Reimbursement

The drawer could face fines that exceed the amount of the cheque or even two years in prison if found guilty of cheque bounce by a court. In addition, the drawer could be ordered to compensate the payee up to twice the amount of the cheque, as stated in Section 138 of the Negotiable Instruments Act.

Note: Consult a banking lawyer in chandigarh for additional information regarding cases involving bounced checks.

Submit an appeal

Within 30 days following the verdict, either side has the option to appeal the court’s decision. If there are good reasons to disagree, a higher court can review the case using this procedure.

Enforcement programmes

The option to legally enforce the judgement is available to the payee in the event that the drawer does not comply with the court’s order. To get the money and compensation from the drawer, it may be necessary to seize their assets or bank accounts.

Note : If you are in need of legal assistance, you can consult with SL Legal Services, the top law firm in Chandigarh.

Case Laws

Legal principles for Cases Involving Cheque bounces were established in the 1999 case Bhaskaran v. Sankaran Vaidhyan Balan. The document made it clear that the burden of proof lies with the complainant to demonstrate, beyond a reasonable doubt, that the cheque was issued to discharge debt, that it was presented within its validity, and that the bank returned it unpaid.

The Supreme Court’s decision in Dashrath Rupsingh Rathod v. State of Maharashtra (2014) highlighted the power of the court to summon the accused upon filing of a complaint. The fact that the accused resides outside of the court’s jurisdiction is insufficient to justify a lack of court appearance.

Wrap up!

In India, there is a specific procedure to follow when suing a legal notice, filing a complaint, or taking part in court proceedings related to a bounced cheque. The submission of all required paperwork and proof in accordance with these legal processes is of the utmost importance. To successfully navigate the complexities of the legal system and secure a favourable outcome in cases involving cheque bounces, it is advisable to consult with finance lawyer in Chandigarh.

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