Where a cheque gets bounced or being dishonoured by the bank then the following legal actions can be taken- 1. One can also take civil and criminal charge for cheque bounce against the issuer of the cheque. Under Section 138 of the Negotiable Instrument Act, 1881 (NI) you must have to send a legal notice to the issuer of cheque within 30 days from the date of the cheque bounce. And if there is no reply back is received after 15 days of the delivery of the demand notice, you can file the legal complaint within a month. A criminal liability is established under this section too. Here the drawer of a dishonored cheque may get a jail term of 2 years or fine that may amount up to double the amount of the cheque or both. 2. You can also file criminal case for Cheating under Sections 417 and 420 of the Indian Penal Code (IPC). Section 417 provides for Punishment for cheating that is whoever cheats shall be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both. Section 420 provides for Cheating and dishonestly inducing delivery of property and whoever commits such offence shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine. 3. There is also an alternative way to file a civil suit under Order 37 of the Civil Procedure Code, 1908 (CPC) which provides for a Summary suit for recovery of money.
Popular Lawyers in India