Kishan Dutt
IF ACCUSED NOT APPEARING IN CHEQUE BOUNCE CASE (REMEDIES)
Kishan Dutt Kalaskar 17 Mar 2025

IF ACCUSED NOT APPEARING IN CHEQUE BOUNCE CASE (REMEDIES)

IF ACCUSED NOT APPEARING IN CHEQUE BOUNCE CASE (REMEDIES)

 

INTRODUCTION:

There was a time where cheques were considered as the most reliable form of payment. But nowadays due to increase in cheque bounce cases people fear accepting payments over cheque. Mainly a cheque bounce occurs when a payee presents a cheque to a bank   for payment, and the cheque is returned stating insufficient funds by the bank then this circumstance will fall under Cheque Bounce case. A cheque bounce can occur for various reasons but if a cheque bounces due to insufficient funds in the drawer’s account, it amounts to an offense. The cheque that is provided for the payment must be rejected by the bank with a return memo indicating that there are not enough funds. In this situation, the cheque payee may send the drawer a cheque bounce notification requesting payment of the outstanding amount.

Achequeisanegotiableinstrument.Wheneverthechequeisnotuncashedafterits due presentation to the bank, it is said to be dishonored. As soon as the cheque is dishonored, the bank issues a return memo specifying the details of the cheque which includes the date, presentation, dishonored date, cheque number, amount, reason for dishonoring the cheque.

Concerns regarding cheque bounce:

1.      Insufficient Funds – If there are not enough funds in the drawer’s account to cover the cheque amount the bank will reject the cheque and send it back to the payee with a note stating “insufficient funds” in the bank account.

 

2.      Expiration validity of the Cheque – The cheque must be submitted for the payment within three months of the drawer issuing it. If the cheque is not delivered to the bank within three months, it expires.

 

3.      Damaged Cheque – If a cheque is damaged or disfigured and the details are not properly visible or have stains marks then the cheque will bounce.

 

4.      Signature mismatch – If the signature of the drawer is not clear, is missing, or does not correspond with the one in the bank’s record the cheque will bounce.


5.      Other technical errors–Cheques may bounce due to technical errors, such as incorrect dates, incorrect account number or any missing information.

 

LEGALFRAMEWORKSGOVERNINGCHEQUE BOUNCE:

 

1.      Section 138 Negotiable Instruments Act, 1881 deals with Cheque bounce and describes the process for submitting a complaint and addresses the penalty for dishonoring a cheque.

Punishment: Cheque bounce is a punishable offence for which fine can be imposed which may extend to twice the cheque amount or imprisonment for a term not more than two years or both.

 

REMIDIES:

1.      Resubmitting the Cheque: The payee may request the drawer to provide another cheque to correct the error if the check bounces because of any mismatched signature, a discrepancy between the words or digits of the cheque amount or damage. The payee also may file a civil suit against the drawer to recover the amount to recover the amount owed to the payee, not the amount that is bounced, if the drawer refuses to produce another cheque.

 

2.      Legal Notice: After the cheque gets dishonored, a legal notice should be sent by way of the cheque through an Advocate within 30 days from the date of the cheque return memo. Demanding the amount should be returned within 15 days from the date of receipt of the notice

 

3.      Complaint under Section 138 of the Negotiable Instruments Act: A cheque notice is issued under Section138 of the Negotiable Instruments Act when a cheque bounces due to insufficient funds in the drawers account to make the cheque amount payment.

 

4.      Civil Suit: In cheque bounce cases, mostly criminal complaints are filled. Though it is filled as “Suit for Recovery of Money” under the Order VI of Code of Civil Procedure, 1908. It can only be filed when the limitation of issuing a notice or filling a criminal complaint is over.


CONCLUSION:

Cheque bounce is much more serious issue than what it looks like, with legal complications. It affects both the parties, the drawer and the receiver. As mentioned above, there are remedies available to the receiver in case of cheque bounces due to “insufficient funds” including other reasons as well. Approaching a Legal advisor for such matters can help you resolve your legal issue and provide a pathway for compensation and recovery of the said amount. OLQ Online Legal Query LLP is committed to making the legal process for cheque bounce case more accessible and efficient all over India. With a network of skilled legal practitioners based throughout the country we strive to ensure success and deliver justice through expert legal guidance and advise you on optimal course of action.

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nZkkAbWB   1 Apr 2025 3:02am
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