Quick Answer: Is Cheque Bounce A Non Bailable Offence?

Is Section 138 a bailable Offence?

It is undeniable fact that the offence under Section 138 of Negotiable Instruments Act is bailable offence as maximum punishment prescribed is two years and as per First Schedule regarding classification of offences, since punishment prescribed is less than three years, offence under Section 138 of Negotiable ….

What is the maximum punishment for Cheque bounce in India?

Legal action According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.

How do you escape a Cheque bounce case?

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.

What are the Cheque bounce charges?

If a cheque bounces due to insufficient funds or any other technical reason, such as signature mismatch, their respective banks charges for both the defaulter and the payee. The penalty charges for cheque outward return are close to Rs. 300 for most banks, while charges for cheque inward return are about Rs. 100.

How do you defend a 138 case?

The cheque issued in respect of future liabilities not in existence as on the date of cheque would not attract prosecution Under Section 138 of N.I. Act. So even if security cheque is bounced the prosecution can be initiated and only defence is that there was no legally enforceable debt.

Can I go abroad if a Cheque bounce case is going on?

Unless the bank is a beneficiary of the cheque it could not have filed the case. Be that as it may, unless there is an order passed by the court directing you to not leave India you are free to go abroad. … On your failure to turn up in the Indian court on the hearing a warrant to arrest will be issued against you.

Is Cheque bounce case non bailable Offence?

Considered an offence, a non bailable warrant can be immediately issued against you under Section 417 and Section 420 of the Indian Penal Code. In case there is more than one cheque that has bounced, the payee can file separate suits against each dishonoured cheque, which can compound issues for the defaulter i.e. you.

How long does it take to get the court Judgement on a Cheque bounce case in India?

Act, a minimum of 20% of the fine or compensation awarded by the trial court is directed to be deposited and that such amount is to be deposited within 60 days from the date of the order, or within such further period not exceeding 30 days as may be directed by the appellate court for sufficient cause shown by the …

Can you go to jail for check bouncing?

Under criminal penalties, you can be prosecuted and even arrested for writing a bad check. A bounced check typically becomes a criminal matter when the person who wrote it did so intending to commit fraud, such as writing several bad checks in a short time frame knowing there is no money to cover them.

Who can send notice under 138?

This Notice is a Notice which shall be given by the unpaid Creditor (Payee) to the defaulting Debtor (Drawer) through an Advocate in case of dishonour of Cheque under section 138 of Negotiable Instrument Act.

What is the time limit for Cheque bounce case?

30 daysThe cheque should be returned due to insufficient funds. The notice should be given within 30 days of cheque bounce. The drawer has failed to make the payments within 15 days of Cheque bounce notice, legal action can be taken against him within 30 days.

How can I settle a Cheque bounce case in UAE?

Accordingly, the police shall communicate with the Drawee Bank to verify the signature of the drawer of the cheque. If the drawer settles the matter by paying the amount of the bounced cheque, no further legal proceedings will be taken. Otherwise, the Police will register a criminal complaint against the drawer.

How do I proceed with a Cheque bounce case?

Criminal Case Proceedings. In order to file a case for a bounced cheque, the bearer of the cheque must formally lodge a complaint with the police of the respective emirate against the drawer. In Dubai, such complaint may be filed through the Dubai Police mobile application.

Who can file complaints section 138?

If the drawee send legal notice for payment of cheque amount against returned cheque, and the drawer does not pay the amount of cheque within 15 days of receipt of the notice, the drawer can file a criminal complaint under section 138 of Negotiable Instruments Act, 1881 within next one month in the court where the …

How many times a Cheque can bounce?

Although the Reserve Bank of India states that such action can be taken only if cheques, valued Rs 1 crore or above, have bounced more than four times.