Is Anyone Arrested For A Cheque Bounce Case In India?

When a check is presented to a bank for payment but is not honored for one reason or another, it is referred to as having bounced or been dishonored. Section 138 of the Negotiable Instruments Act of 1881 defines cheque bounce as a crime in India.

According to Section 138 of the Negotiable Instruments Act, the notice must be sent in writing by the payee to the drawer within thirty days of the date on which he received the bank's Cheque Return Memo and must demand payment of the cheque amount within fifteen days of the drawer's receipt of the notice.

Steps to be followed by the Complainant

There are certain steps that need to be followed by the complainant. They are:

• The check must be received in three months.
• Following the banker's dishonoring of the check, 15 days' notice must be issued.
• In the situation where the accused does not pay the whole amount owed (a legally enforceable debt), the complainant has 30 days to file a complaint with the appropriate criminal court. Here, the police are unable to investigate any complaints or take any action.

Prosecution Requirements

In order to be subjected to Section 138's provisions, the law specifies the number of requirements that must be met. They are:

• The drawer of the check should have drawn it from an account he maintained.
• It should have been returned unpaid either because the amount of money standing on the credit of that account is insufficient to honor the cheque.
• A cheque should have been written to pay off a financial debt or legal obligation.
• The drawer commits an offense punishable by Section 138 of the Negotiable Instruments Act if, after receiving the notification, payment is not made within fifteen days of the notice's date.

Criminal Offense

Cheque bouncing is a cognizable offense under Section 138 of the Negotiable Instruments Act of 1881, even though it is one of India's most frequent financial offenses. In other words, if found guilty, the offense is punishable by a fine of up to double the amount mentioned in the cheque, a term of imprisonment that may be raised to two years, or both.

Section 138 of Negotiable Instruments Act: Bailable or Not bailable

Sections 417 and 420 of the Indian Penal Code allow for the instant issuance of a non-bailable warrant against any individual if they are found guilty of an offense. If more than one check has bounced, then the payee may bring individual lawsuits against each one, which might complicate matters for the defaulter.

It is necessary to establish the intent to cheat in each instance of the cheque bounce case. The amount in the bounced check- i.e., what one individual owes to the other individual, to whom he issued the check, also plays a major factor. If fortunate, the defaulter will accept that it was an honest mistake or overlook IT, and the individual can get away with paying the bank a minor fine for the bounced check.

New Cheque Bounce Rule

According to a notice published by the Reserve Bank of India (RBI) in August 2021, customers who frequently use cheques or intend to use checks would need to maintain a minimum bank balance. If this minimum amount is not maintained, the cheque will bounce. In addition, the person who owed the cheque would pay a penalty fee. The National Automated Clearing House (NACH) was also altered by the RBI and made available round-the-clock.

These amendments apply to all national and private banks. The regulation change was implemented to expedite and generally enhance check clearing. The organization can complete and approve cheques on Sundays due to the new rule's assurance that NACH would be accessible each day of the week.

You will need a lawyer to draft legal notices, file written complaints, etc., in a cheque bounce case. If you want to file a cheque bounce case where the real estate promoter in Delhi gives a cheque, and it bounces, then Real Estate Lawyers In Delhi can be appointed. Likewise, Cheque Bounce Lawyers In Delhi can be assigned if you want to obtain anticipatory bail to avoid getting arrested in the cheque bounce case in Delhi.

You can talk to a lawyer at Lead India Law. At Lead India Law, you can ask questions to experts online for free and receive Free Legal Advice online. 

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