What is the punishment under section 138?
Asked by: Zita Kuhic | Last update: August 26, 2022Score: 4.6/5 (59 votes)
Criminal Liability: Section 138 provides criminal liability by providing punishment of imprisonment of two years or offline or both. The drawer for criminal liability is prosecuted under section 138 of the Indian Penal Code, 1860.
What is the maximum punishment for cheque bounce in India?
According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.
What is the punishment for dishonour of cheque under Section 138 of the Negotiable Instruments Act?
A person convicted for an offence under Section 138 of the Negotiable Instrument Act, 1881 shall be punished with imprisonment for a term which may extend to 2 years and with a fine which may extend to twice the amount of the cheque, or with both.
What is the case of 138?
i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the ...
Is cheque bounce a criminal offence in India?
If a cheque is bounced citing insufficient funds in bank account, it is a criminal offence and the payee - the person or the bank - can file a complaint under Section 138 of the Negotiable Instruments Act.
How to win cheque bounce case (section-138 of N I Act) and its practical process | Recent Amendments
How do you defend a 138 case?
Cheque bounced given as a security
If the accused or the drawer of the cheque, proves that the cheque issued, was not in discharge of any debt or liability, while issuing the cheque, and it was just given security deposit, hence it does not attract the offence under the Section 138, of the Negotiable Instruments Act.
Can I get bail in cheque bounce case?
Bail in cheque bounce is a matter of right of the accused as it's a bailable offence. So you have to give an bail application through your advocate and have to give security as per the orders of the judicial magistrate.
Is 138 a criminal offence?
The Section 138 of the Negotiable Instruments Act 1881, treated cheque bounce as a civil wrong, until 1988, when it was brought under 'criminal offence', with a prison term of up to two years, while leaving the right to approach a civil court unaffected.
Is Sec 138 bailable?
An offence committed under Section 138 is a non-cognizable offence. Also, it is a bailable offence. Offence under section 138 will be completed with following components: Drawing of Cheque by the drawer for the discharge of debt or other liability.
What is the time limit for cheque bounce case?
As per Negotiable Instruments Act, legal notice must be sent within 30 days from the date of cheque bounce. Thereafter within 15+30=45 days from the date of sending the legal notice, case must be filed.
What will happen if cheque bounce?
In India, a person issuing a cheque will be committing a criminal offence if the cheque is dishonoured (cheque bounce) for insufficiency of funds. Cheque bounce offence is punishable with imprisonment for a term up to two years or with a fine twice the amount of the cheque or both.
Is security cheque bounce a criminal offence?
The offence of dishonour of cheque is made out only if the cheque had been issued for the discharge of any debt or other liability. If the cheque had been issued as a “security”, and if such cheque bounces, no offence is made out under Section 138 of the Negotiable Instruments Act.
How do you escape a cheque bounce case?
File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.
Is cheque stop payment illegal?
New Delhi, Aug. 31: Even a “stop cheque payment” instruction to his bank can land a person in jail. The Supreme Court, in a recent judgment, has ruled that such instructions amount to an offence under the Negotiable Instruments Act, 1885, enough to send the offender behind bars.
What is offence amount in dishonour of cheque?
As per the Section 138 of the Negotiable Instrument Act, 1881, dishonour of cheque due to insufficient fund in drawer's account is a criminal offence. Drawer can be punished with imprisonment for up to two years, and/or a fine up to twice the amount of cheque bounced.
What is the case type for cheque bounce?
When a cheque is bounced for insufficient funds in the bank account, it is a criminal offence. The payee can file a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881.
Who can send notice under 138?
Only the payee can issue the notice under Section 138 to the defaulting drawer. However, the payee can issue the notice under Section 138 of the Negotiable Instruments Act through an advocate or legal firm.
Who can file complaints section 138?
A complaint under section 138 of the Act can be filed only by the payee of the dishonoured cheque or by the holder in due course as mandated by Section 142 of the Act.
How many cheques can be filed in complaint?
Procedure for Filing of Complaint:
In case of more than one cheque as part payment of one transaction, Single Complaint maintainable upto four (4) cheques in case of all cheques are related with same transaction. [2019(4) Civ.
What is the minimum amount for cheque bounce case?
Act, a minimum of 20% of the fine or compensation awarded by the trial court is directed to be deposited, said SC. Cheque Bounce Case: The Supreme Court has held that the accused shall deposit 20 per cent of the amount in question to appeal against order in a cheque bounce case.
Can accused give evidence on affidavit?
Union of India & Ors., (2014) 5 SCC 590, whereby the Apex Court had allowed the accused to give his evidence on affidavit, unless there was a just and reasonable ground to refuse such permission.
How can I make a cheque bounce case strong?
The Complainant with the help of his/hercheque bounce lawyerputs forward all the evidence like original bounced Cheque, Cheque Return Memo, Record of sending a demand notice to accused and all other relevant documents in support of his/her case to prove that accused is under a legal obligation to pay the stated amount ...
How long does it take to get the court Judgement on a cheque bounce case in India?
The Supreme Court has passed the order on the video conference hearing that the High Court have to take actions in cheque bounce case within 4 weeks when the Court is taking suo motu action and within 2 weeks the high court has to submit a report regarding dishonoring of cheque and regrading the order made by Supreme ...
How can you prove that a cheque was given as security?
“If in a transaction, a loan is advanced and the borrower agrees to repay the amount in a specified timeframe and issues a cheque as security to secure such repayment; if the loan amount is not repaid in any other form before the due date or if there is no other understanding or agreement between the parties to defer ...
Can NI 138 and IPC 420 be filed together?
Answer By Lawyer : 138 NI act and 420 IPC can be filed simultaneously.