Can Bounced Cheque Be Deposited Again

A cheque bounce is an offence under Department 138 of the Negotiable Instruments Act, 1881 ("Act") punishable with a fine which can extend to twice the amount of the cheque or imprisonment for a term not more than two years or both. When the payee presents a bank check to the bank for payment, and the cheque is returned unpaid by the bank with a memo of insufficient funds, then the bank check is said to have bounced.

A cheque bounce tin occur due to several reasons, only if a cheque bounces due to bereft funds in the drawer's account, it amounts to an offence nether the Act. The bank must reject the cheque presented for payment with a render memo stating the reason as insufficient funds. In such a case, the payee of the cheque tin issue a cheque bounce find to the drawer demanding to pay the cheque amount.

Circumstances of Cheque Bounce

The diverse situations that result in check bounciness are equally follows:

• Bereft account residue – If at that place is not enough balance in the drawer's business relationship to make the payment of the cheque, the bank will pass up and return the check to the payee with a memo stating insufficient funds to pay the bank check amount.

• Expired validity of bank check – Once the drawer issues the check, it must be presented for payment within three months. If it is not presented to the banking company within three months, the bank check expires. If the expired cheque is presented to the bank, it bounces.

• Overwriting – If the signature of the drawer or cheque amount or whatever other statement has been overwritten on the cheque, then the cheque bounces for overwriting.

• Damaged cheque – If a check is damaged or disfigured and the details are not visible or accept marks or stains, the check will bounce.

• Signature mismatch – If the drawer's signature is unclear or absent-minded or does non friction match the one in the bank'south data, then the cheque will bounce.

• Mismatch of amounts or digits – If the cheque corporeality mentioned in words and figures does non match, then the cheque will bounce.

Remedies Against Cheque Bounce

Resubmission of check

When the cheque bounces due to overwriting, mismatch of signature, mismatch of the figures and words of the cheque amount or damaged cheque, the payee tin enquire the drawer to submit another cheque rectifying the mistake. If the drawer does not concur to submit some other cheque, so the payee can initiate civil action against the drawer to pay the cheque amount due to him and not for cheque bounciness.

Bank check Bounciness Find under Section 138 of the Negotiable Instruments Act

A cheque bounciness notice is issued under Section 138 of the Negotiable Instruments Human action when a cheque bounces due to insufficient funds in the drawers' account for making the payment of the cheque amount. If the check bounces for whatsoever other reason other than insufficient funds, the bank check bounciness notice cannot be issued, and the payee tin can demand resubmission of the bank check.

Issuance of Cheque Bounce Discover

When the cheque bounces due to an insufficient amount, the starting time step is to need the payment of the amount by issuing a cheque bounciness observe in writing by mail nether the Negotiable Instruments Human action. The payee can issue a cheque bounciness notice within 30 days of an intimation sent by the bank forth with the bounced cheque stating that the bank cannot make the bank check payment due to an bereft amount.

After issuance of the bank check bounce discover, the payee must requite the drawer fifteen days time period from the receipt of the check bounce detect to pay the cheque corporeality. If the drawer does non pay the cheque corporeality even after the death of 15 days fourth dimension menstruation, and so legal action can exist initiated by the payee against the drawer within 30 days of the expiry of xv days.

Withal, a cheque bounce discover cannot be issued if the bank check was issued as a donation, gift or any other obligation that is not legally enforceable. The cheque must exist issued for the discharge of a legally enforceable liability or debt to found an offence under the Act.

Procedure to Follow After Issuance of a Cheque Bounce Notice

After the decease of 15 days of issuing the cheque bounciness notice, the payee can initiate legal action against the drawer. The payee should register a complaint under Department 138 of the Act. Under Section 138 of the Deed, the offence of check bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint confronting cheque bounce earlier the Magistrate within 30 days of the expiry of 15 days of the issuance of the check bounciness notice.

Jurisdiction of Magistrate for Filing Cheque Bounciness Suit

The payee can file the complaint before the Magistrate in any of the following places:

• Where the cheque was fatigued,
• Where the check was presented for payment,
• Where the payment had to be made,
• Where the check is dishonoured, or
• Where the demand discover was served.

The cheque bounce complaint has to be filed before the Metropolitan Magistrate if the suit for the bank check bounciness falls in whatsoever of the metropolitan cities. If the arrange for bank check bounce falls in whatsoever other cities, so the complaint must be filed before the Judicial Magistrate.

Process of Cheque Bounce Arrange

The process of a cheque bounce adjust are every bit follows:

• Filing a complaint earlier the Magistrate after the expiry of fifteen days of receipt of cheque bounce notice past the drawer.
• The payee/complainant has to appear before the court and provide the details of the case. If the Magistrate is satisfied with the complainant'due south statement, he will result summons to the drawer for actualization earlier the courtroom.
• The drawer volition appear and accept or deny the facts stated by the complainant. If the drawer denies the complaint, then the court will proceed with the criminal trial of the example.
• The drawer/accused will file his statement, testify and arguments of both sides will exist presented to the courtroom.
• If the courtroom finds the drawer guilty of the offence of cheque bounciness, the court will laissez passer a sentence of conviction against the drawer for the offence of cheque bounce.

The punishment for cheque bounce is imprisonment for a term not more than than two years or a fine that can extend to twice the corporeality of the cheque or both.

A civil accommodate can also exist instituted confronting the drawer for payment of the bank check amount. In the case of the establishment of a ceremonious conform, the payee cannot consequence a cheque bounce notice. The payee can only upshot legal discover for recovery of the amount.

The offence of cheque bounce nether Section 138 of the Act provides criminal penalization for the reason of check bounciness due to bereft amount, whereas the civil accommodate for recovery does not punish the drawer and provides for only the recovery of the cheque bounce amount.

The cheque bounce observe can exist issued against the company, and a criminal suit can exist initiated against a company when the company issues the cheque, and it bounces due to an insufficient amount under Section 148 of the Act. When a criminal suit is initiated under Department 148 of the Deed, the company and its directors will be punished for the offence of cheque bounce.

However, if the drawer pays the cheque corporeality to the payee within 15 days of receipt of the check bounce notice, no office is committed by him, and legal activity cannot be instituted confronting him for cheque bounce under section 138 of the Act.

Frequently Asked Questions

Can I file an FIR for a cheque bounce?

Yes, y'all tin file an FIR confronting the person who has issued a check. A person can and then file a case against the issuer of the cheque under Section 420 or 406 of the Indian Penal Code (IPC) in a criminal court. Alternatively, the payee can directly file a complaint before the Magistrate under Department 138 of the Negotiable Instruments Human action, 1881 for a cheque bounciness case after issuing a cheque bounce notice.

Is cheque bounciness a crime?

Yep. When a check is bounced for the reason of insufficient funds in the bank business relationship, it is a criminal offense. The payee tin file a criminal complaint under Department 138 of the Negotiable Instruments Act, 1881. When a criminal complaint is filed, the issuer of the cheque can exist imprisoned.

Can I exist arrested in a cheque bounciness case?

Aye, you tin can exist arrested if the cheque issued by y'all bounces for the reason of bereft funds in the account since it is a criminal offence. The penalisation of imprisonment is provided to ensure that unscrupulous people practise not fool innocent people in regard to payments and that they do not escape or flee away from the country. However, it is a bailable offence. Thus, you can get bond if you assure your presence in court when demanded.

What is the bond corporeality for the cheque bounce case?

The bail amount for a cheque bounce instance varies on a case-to-example basis. Certain parameters bear upon the bail amount such equally, the corporeality for which the check was issued, the number of like cases awaiting against the drawer in the same transaction, the financial status of the drawer, etc.

What is a cheque return memo?

When a check is dishonoured, the depository financial institution bug a memo to the issuer of the cheque containing the reason for the dishonour of cheque, date of cheque bounce, cheque number and date of issue of the cheque. This memo is chosen a bank check return memo and is an essential document to issue a cheque bounce notice. The payee can issue a cheque bounciness notice based on the cheque return memo issued by the banking concern.

What are the documents required to file a cheque bounce instance in Republic of india?

The documents required to file a cheque bounce case in India are:

• Copy of the notice served on drawer
• Proof of service of find, either courier receipt or receipt of registered post
• Original cheque on tape
• Bank check return memo issued by the broker to the drawer
• Proof of the being of a legally enforceable debt or liability

Tin there be both civil and criminal proceedings in example of cheque bounce?

Aye, there can be ceremonious and criminal proceedings against the issuer in case of cheque bounce. The civil proceedings can be instituted under Department 138 of the Negotiable Instruments Act, or criminal proceedings can exist initiated by filing a complaint before the Magistrate.

Tin I send the cheque once more to the bank if it has bounced once?

Yep, you tin can send back the check to the banking concern even if it has bounced one time. Dishonour of cheque in one case or twice does not curtail your right to ship the cheque to the banking company for payment.  In that location is no restriction regarding the number of times a check tin can exist presented. However, when y'all present the bank check, and it is dishonoured again, it volition give ascent to an additional cause of action for filing a complaint under Department 138 of the Negotiable Instruments Human action, 1881.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-customer human relationship is created when you lot admission or apply the site or the materials. The information presented on this site does non constitute legal or professional advice. Information technology should non be relied upon for such purposes or used every bit a substitute for legal communication from an attorney licensed in your state.

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