A proposal by the central government aims to reinstate several offences under the financial sector's laws, such as the bouncing of checks, as civil offences rather than criminal offences. There will be an increase in the efficiency of the courts and it will also make doing business easier. In addition to fines and penalties, they will not have to pay any prison time as punishment. In this blog , we are going to discuss all about the Cheque Bounce Case In Chennai
The Supreme Court has stated that over 40 lakh cases of bounced checks are pending in the country, making it one of the most common offences plaguing the financial world. It is possible for a check to be dishonoured for a variety of reasons, the most common being an insufficient amount of funds in the account of the person drawing it, as well as a mismatch between signatures and bank records. When a check bounces in Chennai, you should send a demand notice to the party that wrote it.
The notice will threaten to initiate proceedings under the Negotiable Instruments Act (NI Act) if the amount due is not paid. When a check bounces for the first time, the bank issues a cheque return memo which explains the reasons for non-payment. There are some situations where a check holder may be able to resubmit the check if he believes the bank will be able to honour the check the second time around within three months of the date printed on the check.
Procedure for Sending the Demand Notice
As stated in Section 138 of the Negotiable Instruments Act, a payee has the right to file a criminal complaint against the check issuer if the check issuer does not make a new payment within 30 days of receiving the notice. If you want to make the complaint valid, it must be filed within one month of the expiration of the notice period before it can be heard in a magistrate’s court.
Requirement for Filing Cheque Bounce Case
In the event that you do not file the complaint within this timeframe, your suit will become time-barred, which means that it cannot be heard by the court unless you prove you have a good reason for the delay. After receiving the complaint, along with the affidavit and all relevant papers, the court will issue the summons, and the case will be heard.
A defaulter may face up to a two-year prison sentence and/or a fine that is as much as double the amount of the check if found guilty. The above-mentioned process is helpful for taking a defaulter to task, but it does not always result in the pending dues being recovered. For recovery of the check amount, as well as the costs incurred and interest lost, one can file a separate civil lawsuit.
Cost of Cheque Bounce Case
You will be required to pay around ₹750 to send a demand notice in Chennai, but you may do so if you are capable of doing so yourself. Nevertheless, a lawyer will charge you anywhere between ₹1000 and ₹20,000 per hearing for representing you in court, depending on their experience and competence.
Conclusion
Our team can help you find the best check bounce lawyer in Chennai for your needs, whether you have a check issued by a debtor that has declined or has been bounced, a check bounce notice that has been issued against you, or you have been summoned by the court for a 138 NI (Negotiable Instruments Act) complaint against you. For further help contact our team
