Cheque Bounce | Case Procedure and limitations Period

Today, money transactions in India have started happening either online or through cheque, but when the same cheque is not accepted by the bank and claims to be bounced by the bank, then the problem starts.

Cheque Bounce

If you received a cheque from someone and you deposit that cheque in the bank so that you can withdraw the cash and then the bank informs you that money cannot be withdrawn from this cheque because there is no balance in the account, then in such a situation the Cheque deposited by you is Cheque Dishonour means the cheque gets bounced.

Cheque Bounce
Picture Source :- freepik

Procedure Of Case/How to File a Case:-

It is very important to understand that if your Cheque get Bounced in that situation you have to ask your advocate for next procedure, but you can also start small Process that is that when you got informed by the Bank about Cheque Bounce then your first step is to ask for memo from Bank on that memo you see the reasons behind the Cheque Bounce, memo is also very important part of the Court Fileing.

Then Within specified Time period by the law, you can send Notice to that person or other. And inform him about Cheque Bounce warn him to add the amount in account as he has mentioned on Cheque, you can warn him through Notice but it is our suggestion to ask your advocate in that situation, send him Legal Notice through your advocate. 

After that he has not replied your Notice or Legal Notice then your advocate can file a Case or Complaint Before the Hon'ble Court, Their is 99% chance that you will get your money back, as he had mention on Cheque.

Negotiable Instrument Act 1881

Under Section 138 Dishonour Of Cheque For Insufficient Balance of Funds in the account.

Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge , in whole or in part , of any debt or other liability, is returned by the Bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that Bank, Such a person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this act, be punished with imprisonment for a term which may extend to two year or with fine which may extend to twice the amount of the cheque , or with both:

Limitation Period In Cheque Bounce Case for Fileing the Complaint Before Hon'ble Court:-

In such a situation, either you should directly talk to the person and give him 30 days time to make the payment and get a memo from the bank as to the reason for the bounce of the cheque. This will save you from any problem in the court in future. But notice will have to be sent by your advocate within 30 days of receiving the memo.

 If the person does not give you the amount even within 30 days, then you must meet your lawyer and tell him about it and immediately send a Legal notice to that person through your lawyer within the time limit of 30 days.

But if you do not know the person and have no faith in him, then do not give time to such a person, and in case of check bounce, immediately after taking a memo from the bank, you can send a notice to that person through your lawyer the next day , and similar provision is also there in the law.

 After this, if the person does not give any reply within 15 days, then after the expiry of 15 days, file 138 case i.e. complaint in the court within the time period of 30 days and after this the court proceedings will start There is no way to escape now for accused. 

1.Cheque Bounced - Today 
2.You can send Notice after receiving Memo from that Bank where your cheque was Bounced. But This process Should be Completed within 30 days from the date of cheque Bounce.
3.After Sending a Legal Notice wait for 15 Days, if Within 15 Days there was no reply from that person You can File a Complaint against that person within 30 days . 
Note- 30 Days time period will start from the completing of 15 Days.
4. Total Days For fileing is 45 Days.

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