Suresh jain (Proprietor) 04 April 2015

Cheque bounce / applicability of 420

Dear sir/s,

Our customer Pvt ltd company has given cheques of a current account while the same company is operating Cash credit account in same bank. The current a/c has no sufficient balance as spoken by bank manager verbaly. if i present the cheqes than the cheque will be returned with the remark " in-sufficient balance" or " stop payment".

Can i go for Criminal case under 420 and 406 in local court or police station after cheque returns.

If I go for civil suit than the amount is very big. Will the court give liberty to deposit court fee at the time of filling of suit.

Can i go to RBI for action against Bank for opening of current a/c while the party is having Cash credit in same bank.

Please suggest.

Suresh

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4 Replies

SAINATH DEVALLA (LEGAL CONSULTANT) 04 April 2015

Mr.Jain,

Why do U want to do so many things. Current Account and Cash Credit Account cannot be linked for transactions.Hence the cheque will definetely get bounced if there is no sufficient balance.Then think of legal procedures. Without actually depositing the cheque , U R going as far as RBI, don't presume things.

Bhaskaran Advocate (Lawyer) 05 April 2015

A cheque is a cheque. In your case the cheque may also be returned with instructions, 'Refer to Drawer. Whatever the reason if a cheque is bounced send a legal notice within 15 days from that date of you receiving the intimation.

Then wait for another 15 days for reply and if reply is received file a cheque bounce within 15 days from the date of your receiving the reply. If there is no reply then file a cheque bounce case before the lapse of 15 days.

Except going to court there is no other go. Section 420 gets attracted as soon as the cheque is returned.

SAINATH DEVALLA (LEGAL CONSULTANT) 05 April 2015

MR.Bhaskaran, he has not deposited the cheque till date

recowerymoney (professional-recowerymoney@gmail.com) 07 April 2015

You can go to court , all other options have no meaning. For cheque bounce cases there will be conviction and courts may or may not give compansation. Civil procedure for cheque is sure recovery with interest and expanses.