Cheque Bounce Legal Assistance in Ghaziabad: Trusted Lawyers

Overview

A negotiable instrument is a cheque. The drawer is the person who issues the cheque bounce in Ghaziabad, the payee is the person who receives it, and the bank that is instructed to pay is the drawee. A cheque that has been crossed cannot be negotiated by anybody else save the payee.

If the cheque is returned for inadequate funds, the person who issued it will have committed a criminal act. A cheque bounces violation carries a maximum two-year prison sentence, a fine equal to twice the amount associated with the issued cheque that bounces, or both.

Therefore, it is critical that everyone understands their rights, obligations, and responsibilities regarding cheque bounces and keeps enough money to maintain this kind of financial management to prevent these kinds of crises.

We have Ghaziabad-based Cheque Bounce Advocates at our offices who handle Cheque bounce matters following the provisions of section 138 in the Negotiated Instruments Act. It is necessary to meet three requirements to file a case according to section 138.

The cheque has been delivered to the banks within between three and six months after the day it was drawn or during the validity term, whichever comes first;
The payee along with the person who holds it in the course of the cheque, whichever is applicable, demands payment of the stated amount of cash by notifying the cheque drawer in writing (within 30 days) of receiving information from a bank regarding the cheque being returned as unpaid; and
The cheque drawer fails to pay the stated amount of cash to the payee or, whichever is applicable, to the holders in due obviously of the cheque, within 15 days of receiving the aforementioned notice.
If all three elements are met, section 138 permits prosecution.

Amendments have recently occurred

Recent revisions to the Negotiable Instruments Act have added to these provisions by adding new sections 143A and 148.

A new provision to Section 143 was added in 2018 when Section 143A was amended. This allows the court to attempt to prove an offense under S. 138, giving a drawer for the cheque the authority to compensate the drawee for any necessary costs associated with a summary trial or summons in which the drawee argues not guilty.

The Appellant Court may also move forward with the demand which is pending in an appeal against the conviction under S. 138 of the NI Act thanks to Section 148.

Penalties, Punishment, and Charges

Issuing a cheque that is returned for whatever reason—insufficient money, for example—is illegal, according to Cheque Bounce Lawyer within Ghaziabad. The drawer of a bounced cheque may be subject to criminal prosecution as well as fines and penalties.

The charges, fines, and penalties that apply in India when there is a cheque bounce In India, cheque bounce situations are subject to the following fees:

A person who draws or endorses a cheque or order for payment of money knowing that there aren't enough funds on deposit to cover the cheque or order will be punished with a fine and simple imprisonment for a maximum of six months, according to Section 138 for the Indian Penal Code.

Cheques are defined as any instrument in paper payable towards the bearer or individual approved by the drawer of them, drawn on or issued by the RBI of India, or the other bank named within it for the transfer of money, or as bankers' cheques under The section 2(iii) of a Reserve Bank of India's Act, 1934.

A person who draws or endorses a cheque or order for payment of money knowing that there aren't enough funds on deposit to cover the cheque or order will be punished with a fine and simply being imprisoned for a maximum of six months, according to Section 138 among the Indian Penal Code. The aforementioned section states that if someone draws or endorses a cheque or order for payment of money knowing that there aren't enough funds on deposit to cover it, they will be punished with a maximum of 6 months in jail and a fine.

If they know at that moment of drawing the cheque or order that they don't have enough money on deposit to cover it, they will also be fined. Simple imprisonment with a maximum term of six months and a fine are the penalties stipulated in Section 138 of the Indian Penal Code.

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What consequences can Cheque Bounce cause?

In addition to fines and penalties, a bounced check can result in other negative outcomes, such as harm to one's credit report. The Act on Negotiable Instruments permits the payee to file a lawsuit against the check's issuer.