In the world of digitization, people either do bank transaction online or through bank cheques. And in cheque transaction many times we hear that a cheque becomes a bounced cheque or dishonoured. There are many reasons under which a cheque can be bounced. But, do we know under section 138 and certain grounds we can file a case against the drawer or a defaulter of a cheque?
If you are also the one who submitted the cheque to the bank and the issued cheque becomes a bounced cheque, then need not to worry. Just follow the guidelines given below and take the right action under section 138 accordingly.
Few facts about Cheques:
• Cheques can be valid only for 3 months. After three months of period, the particular cheque gets cancelled and has no value
• One can give cheque for any type of bank transactions
• Cheques can also be used for donation to NGO’s
• Cheques are issued for the purpose of keeping the money as security in any business
Complain Under Section 138:
After the cheque bounces one has to send a notice to the defaulter of the cheque given by. If the creditor will not get any reply from the debtor, then within 15 days creditor of the cheque can send a notice to the debtor and file a case. According to Kapil Shankla, Lawyer, Supreme Court of India- “India is going through cashless economy; in this situation, there should be some special court to solve cheque bounce cases, where one can resolve the cases through fastrack court as soon as possible.”
• If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (Drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act 1881 Section 138.
• If a drawer is an individual then the case will be file under Negotiable Instruments Act Section 138
• While in case of a company, if a cheque bounces, then one can prosecute the managing director of the company under Section 141
• One must send the demand notice within 30 days from the date of bounced cheque issued to you
• Demand notice is usually employed to inform the issuer of the cheque to do the payment within 15 days else he or she will be prosecuted
• One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor
• Remember, one cannot take legal action if the cheque given to you was for gift, advertisement or a donation
• According to RBI’s rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times
• If offence has been done at least four times with cheque valued over Rs 1 crore, then the bank has the right to stop issuing cheque book to the customer
• One may get two years jail and debtor has to pay the due amount along with double interest rate charges (depends on the decision of the court)
Before filing a complaint against a debtor always go through the detail along with the reason in a slip as for why cheque bounced. Try to keep a sufficient amount in your account before issuing a cheque to anyone; else you have to face legal consequences.
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