The bouncing of cheque entitles the holder of cheque to take criminal action against the drawer of cheque but only if a strict procedure is followed in this respect, which is as follows:
1. In case a cheque is bounced, a notice has to be issued to the drawer of the cheque (Oppsoite Paty) within 30 days from the date of memo accompanying the bounced cheque is received from the Bank.
2. The notice by the holder of the cheque should demand the amount for which the cheque has been bounced, providing 15 days to settle the matter.
3. The Opposite Party has 15 days from the receipt of the notice to settle the matter and no cause of action arises till the expiry of these 15 days or if paid within this specified period.
4. After the completion of said 15 days, if the opposite party does not settle the matter or ignores the notice, then the holder of the cheque may file a criminal complaint before the appropriate court within 30 days of the expiry of said 15 days.
5. In case, it is beyond the said period of 30 days, the delay can be condoned by the court on sufficient cause being shown.
Stages of Court Proceedings: http://chequebounce.com/2013/stages-of-cheque-bounce-case/
ramaraop says
a. Issued a cheque b. Deposited the same returned unpaid due to insufficiant funds b. File criminal complaint a. State that subject matter cheque is not signed by A\’Case laws may be give to establish prosecution case – View Group – already pending in court,referal case.like this case any old verdicts like same sir – View Group
V Haresh Kumar says
Respected Sir, I am veteran & purchased a plot from the plot developer at Bangalore during 2007 while I was serving with the Army. After retirement, i had decided to sell it with same land developer & he also agreed for that. Now, remaining Rs 1.6 Lacs which he was given by a cheque was returned by bank stating that “No sufficient Funds”. I had requested him, he talked mannerly but given 2-5 days another. And now more than 45 days have been lapsed and he did not yet cleared. Advise for further action.
With warm regards,
Ex Army Soldier
V Haresh Kumar
NK says
Do you really thing recovering cheque bounce is so easy in court, Let me share my experience.
My case was simple i gave 5 lack to other party for executing business partner ship, the oppsire party did not give partner ship not he return back my money and just gave me a letter stating he will give my money back and also a cheque for surety.
Now watch the bad part of my life.
1. I sent a notice to second party for pay or i will file criminal case.
2.The second party did not reply.
3. I had to approach court and first date came after 4 months of the Notice.
4.The second party did not come to court, and Judge issued a billable warrant which he recalled paying some small amount to court.
5.Both party approached court and Judge asked the second party did he take the money he said no and judge said him to appear the court with security of my 5 lackhs in next date and next date was after 2 months,
6.After 2 months he came with some third person security and paid some 10000/- in court and next date after 45 days.
7.Next date the writer of the court did not come and next date after 30 days.
8.The second party did not come to court and next date after 40 days.
9.Judge did not come and next date after 30 days.
10.Both party came and all the documents were checked and next date after 45 days.
11.Next date the examined me and asked me the same things which i submitted and next date 45 days.
12.Next date the other person was examined and next date after 2 months.
13.Next date the advocate of other side raised a counter that he did not see the documents submitted by us so we gave him one copy and next date after 35 days.
14.Next date he saw all the documents and he said the case is of 5 lack and i have submitted 2 cheque the Judge interfered and suggested my advocate to link the cheque and next date after 30 days.
15.The opposite advocate raised a counter that did i show this amount in IT if given to him, i was lucky that i have done that so judge gave next date after 35 days.
16.Next date second party did not come and Judge gave serious warning and next date 30 days.
17.Next date second party did not come and submitted a medical certificate that he is ill and next date 50 days.
18.Next date both party came and Judge came to some final decsion that all the documents submitted by me are genuine so pay or go to jail and next date after 30 days.
19.Next date his advocate came with counter that the second party taken money and now he has no money, Judge gave one more warning and next date 60 days.
20.Atlast Judge mercy on me and said will pay or go to jail he said he will pay after 6 months Judge opposed and said no and gave him 30 days time to pay or go to jail.
21.He pulled the case again to High court and first date came after 3 months in High court.
22, First day same story like lower court and again 3 months date.
23.24.25.26.27.28 – same old storied and atlast High court after 2 years gave the same decision what lower court gave
30.The second party agreed to pay in that time.
31.I have filled civil suit for recovery for it and still its running in court.
Prabhu says
I commend your patience.
I am almost in this now.. with a bounced cheque in my hand and reading these websites to know the process.
Let me tell you, I am going to slog and still enjoy the process, just to know that the other party will also slog. 🙂
Narik says
I am also in the same situation.The company is closed now and they have all switched off their mobile numbers.i don’t have any clue when things will happen positive.I LOST 5 Lakhs
Ramesh L Kulkarni says
I am Constructing the house I am paying the amount to the contractor by cheque in his name and his wife name also and I have taken a cheque from him as a security deposit. From past 2/3 month he is not responding properly and also delaying the construction activity, I have paid around 1.00Lakhs extra amount against the work done by him. We have not made any agreement. I can deposit the cheque received as security deposit, if cheque is bounced can I file the case against him.
Dr. varun sharma says
i filed a case of cheque bounce in gurgaon court and the other party won the case
can anybody tell me how to file the case again in the high court and what is the time limitation of filing the case in high court?
1 month is over after the result came in gurgaon court.
CHANDRASHEKHAR PRADHAN says
in my case , party has refused to accept summon, issued by the court, so kindly advice what action can be taken now…
shahbaz siddiqui says
sir, I gave cheque to a party for security of money he told me I will not draw the cheque so I gave the cheque to him I have written only the amount I don’t put the name or date on the cheque he gave that cheque to a third party and he write his name and put the cheque for clearing without informing me and after 6 months he is now telling me that I will file case against you I don’t have any relation with the third party I don’t even know the name of the third party the first party tells me that I don’t know about this you manage it this payment is not any bill or loan payment it is an money of V C it is illegal there is not any paper work with this cheque so sir please give me some advise
admin says
The prosecution cannot be initiated after 6 months. They can maximum file a suit for recovery as a civil matter.
S.k.mujawar says
one labour can taken me of Rs 6000 from me he was given a cheque. But when i was gon the bank for collect d cheque thair is account is empty. Please give me a legal adwise how can i recover my amount
kantilal dharamashi bhai bavarva says
sir , one parti has filed cheque return case , but i have not sighn the cheque so what step i have to take plese guide me