R.Ranganathan (Advocate) 10 February 2012

Cheque return

Cheque Returned for insufficient funds. Notice under Sec 138 NI Act issued. The defaultor issued another cheque in place of the previous cheque guaranteeing payment in response to the Noti ce. But the second cheque was also returned unpaid for insufficient funds. IN such circumstance whether a case can be filed under Sec 138 NI Act against the First Cheque. Any bar to file the same. Whether the court can take cognisance of the offence under NI Act for the First Cheque since the second cheque was issued only as payment towards the first cheque. Request experts opinion on this issue.

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3 Replies

adv. rajeev ( rajoo ) (practicing advocate) 10 February 2012

No, because he has issued another cheque in lieu of the bounced cheque and alredy first cheque might be time barred. If it is within limitation period then you can file, but it is better to rely on second cheque, y issuing a notice referring the fact of first cheque, so you can say the court that he is professional cheque bouncer

sridhar pasumarthy (ADVOCATE) 10 February 2012

According to the amendment to Section 142 of NI Act, If you are able to convince the court with sufficient reason for non-filing of the complaint within time, then you can file a complaint with a seperate application to condone the delay in filing the same.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 10 February 2012

Condonation of delay is not easy since notice will be issued to other side first and after hearing matter will be decided. If in your favor the other side can go for revision on this issue alone.