SS Law Firm

What is the procedure in a cheque bounce case?           Section 138 of the Negotiable Instruments Act, 1881 provides for the procedure to be followed in a cheque bounce criminal complaint. According to the act cheque bounce is criminal offence and is punishable with an imprisonment of two years or with fine equal to twice the amount on the cheque or both. Further according to Sec. 141 of NI Act if an offense under section 138 is committed by company, then each and every individual is responsible for the  offense of cheque bounce.            Upon dishonour/ bouncing of cheque, as a first step, you have to send a demand notice to the cheque issuer to make the payment within 15 days. If they fail to make payment within 15 days of receipt of the legal notice, you can lodge a criminal complaint in the Court having jurisdiction of the area where your bank account is located. This cr...

  NI Act, Section 138 - Bouncing of Non-MICR Cheques, Notice Under Certificate of Posting will be punishable ?   Case Title: Md. Nasim Ansari v. State of Jharkhand      The Jharkhand High Court last week made some pertinent observations regarding the essentials required for prosecution under Section 138 of the Negotiable Instruments Act, 1881 (Act) for the bouncing of non-MICR (Magnetic Ink Character Recognition) cheques.      The Court also issued directions on what would constitute a valid mode of service for the dispatch of a demand notice.      Justice Anubha Rawat Choudhary was adjudicating upon a criminal revision petition against the impugned order of the Sessions Court wherein the conviction of the petitioner under Section 138 of the Act was upheld and payment of compensation amounting to Rs. 80,000.       In the instant case, the cheques of the petitioner were presented for collection before...