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babita   04 June 2018

Cheque bounced

my business party cheque bounced. he did not repay me. I want to file a case against him. plz help me


 1 Replies

Yukta Garg   04 June 2018

Dear sir/ mam. Thankyou for putting forth your query.

Procedure to file a complaint:-

If the cheque has been ‘bounced' then the first step that a payee needs to take is to give a legal notice to the drawer, within 30 days when he comes to know that the cheque was bounced. After receiving the notice, if the person does not rectify his mistake and makes good the loss suffered by payee within 15 days, then he can be prosecuted legally u/s 138 NI Act. If he pays the payee within those 15 days, then he would not be said to have committed any offence, and no action can be taken against him. Also, subsequently, one can file a suit for recovery of the amount of the cheque along with the cost & interest under order XXXVII of Code of Civil Procedure,1908,(which governs the suit in summary trial) and can also file a criminal complaint u/s 138 of Negotiable Instrument Act for punishing the signatory of the cheque for having committed an offence. But keep in mind that can be done only after giving prior notice to the other party and after the expiry of 15 days after the notice has been received by the drawer.

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