Documents required for filing a complaint under section 138:
Below are the required documents:
Bank Return Memo
Legal Notice(demand) sent to the complainant
Reply Notice (if any)
The above are the mandatory requirements which you need to provide to a legal expert who shall then draft a complaint about you and attach certain other documents like evidence affidavit, Vakalatnama etc. Once the entire bundle is ready the case is filed.The word bounce is an informal alternative for the word dishonour. A cheque is said to be bounced or dishonoured when it is returned by the bank unpaid.
Reasons for cheque bounce
Below are some of the reasons for cheque bounce:
Signature not matching
Overwriting in cheque
Cheque was presented after the lapse of the period
Account was closed
Payment stopped by the person who gave the cheque
Mismatch in the account number.
Legal Remedy if a cheque has bounced
The legal remedy when a cheque has bounced is provided under the Negotiable Instruments Act, 1881. Section 138 of the Act states that cheque bouncing is a criminal offence which is punishable with up to 2 years’ imprisonment or with fine or both combined.
Where is the case filed?
The case is filed in the court of JMFC - Judicial Magistrate First Class, who shall then adjudicate the matter.
Fees for filing a complaint under Sec 138 of Negotiable Instrument Act 1881
The Court fees differ from state to state and depending upon the amount of the cheque against which the complaint is being filed. For claim value Rs 1,00,000 onwards the fees increases at Rs 200 for every Rs 10,000 or part thereof up to Rs 11,00,000 and over Rs. 11,00,000 @ Rs 1200 for every Rs 1,00,000 or part thereof up to a maximum fee of Rs 3,00,000.
Procedure for Section 138 of the Negotiable Instruments Act
When a cheque has bounced you may either contact the other person if you are absolutely sure that they may honour the cheque or you can send a legal notice to the person who issued you that cheque demanding to make the payment. However, it is to be noted that the period of limitation for sending such a notice is 30 days from the date on which such a cheque was bounced.
Once the notice has been sent and received by the other party as per the provision 15 days’ time is provided to the other person to reply. If there is no reply from the other party then the final stage is initiated i.e. to file a complaint. There is again a time limit of further 30 days in which you need to file the complaint.
How does Taxolawgy help you process against Cheque Bounce?
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