What is the legal action against cheque bounce?

Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint against cheque bounce before the Magistrate within 30 days of the expiry of 15 days of the issuance of the cheque bounce notice.

Can we file FIR against cheque bounce?

1. Yes, you can now go for registering an FIR against the person who has given you that cheque. One is registration of FIR. iT WOULD BE UNDER 420, 406 etc of IPC.

Is cheque bounce a bailable offence?

No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Further, the offence is non-cognizable so the police cannot arrest without a warrant.

What is the bail amount for cheque bounce case?

Cheque Bounce Case: The Supreme Court has held that the accused shall deposit 20 per cent of the amount in question to appeal against order in a cheque bounce case.

How can I escape a cheque bounce case in India?

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.

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

How long does it take to get the court Judgement on a Cheque bounce case in India? If the case goes to court the judgement may take anywhere around 2 to 5 years to take effect. The legal recourse for cheque bounce cases is straightforward in Indian Law [under the negotiable instruments act].

How many times can a cheque bounce?

The bank may stop the cheque book facility or even close your account. 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.

How much time does a cheque bounce case take?

A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude. The penalty amount is twice the cheque amount which should be more than enough to cover your expenses and the accused may just want to settle in the meantime.

What is the punishment for cheque bounce in India?

The punishment for cheque bounce in India is – (i) imprisonment for up to 1-year (ii) Fine which maybe twice the amount of the cheque or both. Procedure and recourses in cases of Cheque Bounce

How to take legal action in case of a cheque bounce?

To proceed with a legal action in case of a cheque bounce, then you should fulfill the following conditions: The bank must have received the cheque within a period not later than 3 three months after it was issued by the drawer.

What to do if a cheque bounces after deposit?

Cheque Bounce Notice In case you have deposited a cheque that has bounced, send a letter (a demand notice) to the party that wrote the cheque (the drawer), threatening to initiate proceedings under the Negotiable Instruments Act (NI Act) if the amount due is not paid.

What are the cheque bounce charges in SBI Bank?

Cheque bounce charges in SBI bank: Cheque/bill deposited with the bank retu Charges Cheque/bill up to Rs. 1 lakh Rs. 150/- + GST Cheque/bill above Rs. 1 lakh Rs. 250/- + GST Cheques drawn on SBI (for insufficient f Charges For all customers Rs. 500/- + GST, irrespective of the amo