How long is jail time for bounced cheque?
The court, after receiving the complaint along with relevant documents, will start the case. If the drawer is found guilty, he/she will have to, as per Section 138 of the Negotiable Instruments Act, 1881, spend time in jail for up to two years and/or pay the penalty of amount twice the cheque amount.
How do you cancel a non bailable warrant in a cheque bounce case?
you need to file an application for cancellation of NBW before the same court, when the Court orders for cancellation of earlier NBW it will issue an order and receipt (receipt of payment of fine if the court has ordered against cancellation of NBW).
How long does it take to get the court Judgement on a cheque bounce case in India?
How long does it take to get the court Judgement on a Cheque bounce case in India? If the case goes to court the judgement may take anywhere around 2 to 5 years to take effect. The legal recourse for cheque bounce cases is straightforward in Indian Law [under the negotiable instruments act].
What is the court fee for cheque bounce case?
Court fees is 10,000/- for 5 lakhs. The court in who’s jurisdiction you are to file the case is the branch area you have deposited your cheque. Do send him a statutory notice before filing the complaint within 30 days of the cheque being bounced.
Is cheque bounce case non bailable offence?
No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Further, the offence is non-cognizable so the police cannot arrest without a warrant.
How do you take legal action on a bounced cheque?
After the expiry of 15 days of issuing the cheque bounce notice, the payee can initiate legal action against the drawer. The payee should register a complaint under Section 138 of the Act. Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit.
What happens when non bailable warrant is issued?
Non- Bailable warrant is nothing but the warrant of arrest and a person can be sent jail after the issuance of such warrant. Issuance of such warrant is much required when the order of conviction is passed and the accused is not in custody. Balance between Personal liberty and the interest of the State.
How many times a cheque can be bounced?
The bank may stop the cheque book facility or even close your account. Although the Reserve Bank of India states that such action can be taken only if cheques, valued Rs 1 crore or above, have bounced more than four times.
How can I get bail in section 138?
Section 138 of Negotiable Instruments Act, 1881 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank …
How long does it take to settle a cheque bounce case?
A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude. The penalty amount is twice the cheque amount which should be more than enough to cover your expenses and the accused may just want to settle in the meantime.
What actions can I take if a cheque bounces?
How to appeal against order in cheque bounce case?
Cheque Bounce Case: The Supreme Court has held that the accused shall deposit 20 per cent of the amount in question to appeal against order in a cheque bounce case. The apex court Bench of Justices Ashok Bhushan and MR Shah has also reiterated that Section 148 of the Negotiable Instruments Act can be applied with retrospective effect.
What happens if a cheque bounce is late?
In case the drawer of the cheque, within 15 days of receiving the notice of the cheque bounce does not make the payment, in that case under Section 138 of the NI Act would be bound to face the legal consequences.
How many iconic judgments on cheque bounce in 2019 you should not miss?
80 Iconic Judgments on Cheque Bounce in 2019 you should not miss! 80 Iconic Judgments on Cheque Bounce in 2019 you should not miss! 80 Iconic Judgments on Cheque Bounce in 2019 you should not miss! 1- High Court : By simply blaming the advocate, a complainant cannot claim restoration of dismissed complaint (26 December 2019)
What is the punishment for cheque bounce under Section 138?
Section 138 provides the punishment for cheque bounce and states that in case a cheque made for the discharge in-whole/in-part of any debt/liability is dishonoured for either insufficiency of funds or for the amount exceeding the arrangement with the bank, the drawer of such cheque shall be punishable under this provision. 1.