What is a cheque return memo?

A cheque return memo is a note from the bank. It's given when a cheque bounces. The note will explain why the cheque couldn't be paid.

Can I send the cheque again to the bank if it has bounced once?

Yes, you can present a cheque to the bank again even if it bounced once. However, it's important to understand why it bounced the first time to avoid it happening again.

If the drawer has not made the payment, how long should I wait before filing a complaint with the court?

In most cases, you should wait 15 days before filing a complaint with the court. Make sure to send all of the necessary documents, as stated previously.

Is it possible to file a complaint if the drawer gave me a bounced check as a gift?

You cannot bring charges against the drawer if the bounced check was presented to you as a gift or was lent to you for the repayment of a loan installment.

Do I need to submit documents along with my complaint letter to the court?

Yes, you need to submit documents along with the complaint letter to the court. Documents such as the Cheque Return Memo, the original bounced cheque, a copy of the notice sent along with the acknowledgement receipts, and an affidavit stating evidences need to be sent to the court in original format.

What if I don’t file a complaint within the stipulated 30 days of the notice sent?

If you don’t file a complaint within the stipulated 30 days, the case will lapse. However, in certain circumstances, the court may grant you an extension.

Can I file a case for a bounced cheque that was caused due to stop payment instructions?

Yes, you can. A cheque dishonoured under the stop payment instruction is covered under the Section 138 of the NI Act. So, you have every right to press charges. This can be done only after you have sent a Demand Notice to the drawer.

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

The time taken to get the court judgement in a cheque bounce case in India depends on several factors such as the complexity of the case, the number of witnesses, and the court's backlog. However, as per the recent amendment in the Negotiable Instruments Act, 1881, the trial must be concluded within six months from the date of filing the complaint.

Is Section 138 bailable?

Yes, Section 138 of the Negotiable Instruments Act,1881 is bailable, which means that the accused can apply for bail and be released from custody while the trial is ongoing.

How can I recover my money from cheque bounce case?

You can recover your money in a cheque bounce case by filing a complaint under Section 138 of the Negotiable Instruments Act,1881. After the complaint is filed, the court will issue a summons to the accused, and if the accused fails to appear in court, a warrant may be issued for their arrest. If the accused is found guilty, they can be ordered to pay the amount due, along with any additional penalties or charges.

Can a bounced cheque be deposited again?

Yes, a bounced cheque can be deposited again, but it is advisable to contact the issuer of the cheque and resolve any issues before attempting to deposit the cheque again.

Does bounced cheque affect cibil?

Yes, a bounced cheque can affect the CIBIL score of the issuer of the cheque. It can have a negative impact on their creditworthiness and may make it difficult for them to obtain credit or loans in the future.

Who can send notice under Section 138?

A notice under Section 138 can be sent by the person who has received the bounced cheque and is entitled to receive the payment. This person can be the payee or the holder of the cheque.

What is the difference between dishonoured cheque and bounce cheque?

There is no significant difference between a dishonoured cheque and a bounced cheque. Both terms are used interchangeably and refer to a situation where the cheque is not honoured by the bank due to insufficient funds or other reasons.

What is the validity of a bounced cheque?

The validity of a bounced cheque is the same as that of a valid cheque. The cheque remains valid for six months from the date of issue, after which it becomes stale and cannot be encashed.

How much is the cheque bounce penalty charge?

The penalty charge for a bounced cheque is not fixed and may vary depending on the bank's policies and the amount of the cheque. Typically, banks charge a penalty fee ranging from a few hundred to a few thousand rupees.

How much is the cheque bounce penalty charge?

Charges for cheque bounce penalties range from one bank to another from ₹50 to ₹750.

Can I file an FIR for a cheque bounce?

Yes, You have the right to report the cheque issuer to the police. For breaking Articles 420 or 406 of the Indian Penal Code, the issuer of the cheque could thus be brought up in court (IPC). Instead, in accordance with Section 138 of the Negotiable Instruments Act of 1881 for a cheque bounce case, the payee may, upon the issuing of a notice of cheque bounce, promptly present a complaint before the Magistrate.

Can I be arrested in a cheque bounce case?

Yes, If the cheque you issued bounces due to inadequate funds in the account, it is a crime and you may be arrested. To prevent dishonest people from duping innocent people into making payments and from fleeing the nation, the punishment of imprisonment is offered. Although it is a crime, bail is available. So long as you promise to appear in court when necessary, you can get bail.

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

The judgement could take up to five years to take effect if the matter goes to trial. The legal process in India [under the Negotiable Instruments Act] for situations of cheque bounce is simple.

What is the validity of bounced cheque?

The drawer of the cheque must present the cheque no later than 30 days after the day it was honoured in order to exercise his rights under the Negotiable Instruments Act.

Cheque Bounce Cases: Penalties & Notice Format