Cheque bounce case

1.  Cheque Presentation:-

The cheque to the bank should be presented within three months from its date of issue, otherwise, the cheque would expire.

2. Demand Notice

If the cheque bounces, the recipient of the cheque has an option to send a demand notice to the issuer of the cheque. The demand notice usually asks the issuer to transfer the requisite funds within 15 days, failing which the recipient would file a complaint under Section 138 of the Negotiable Instruments Act. This demand notice has to be sent within 30 days of receiving the bounced cheque from the bank. The court may consider a delay if a justifiable reason is provided.

 ​3. Take a Legal Action against the Drawer

In case the drawer fails to make the requisite payment within 15 days as prescribed in the cheque bounce notice, the payee can file a complaint against him in the court within 30 days of the expiration of the prescribed 15 days.

 4. Documents Required to file a Cheque Bounce Complaint

1. Returned cheque slip gave from the drawee’s bank,
2. Original copy of the bounced cheque
3. The receipt of the unpaid cheque.
4. Legal notice,
5. Reply to such legal notice,
6. Acknowledgment of the receipt of such notice, invoice,
7. Any other evidence that deems necessary to the facts of the case.
8. Affidavit  letter of oath ​

5. If Delay In Case Filing With Limatation Act  U/S- 5

Section-138 NI Act: No separate application for condonation of delay: Apex Court accepted condonation of delay in filing of case where reasons were mentioned in complaint itself .

Case -: Birendra Prasad Sah vs The State of  Bihar on 08.05.2019.