What does section 138 say?
Section 138 of the Act deals with the punishment for the dishonour of the cheque. The cheque is a negotiable instrument drawn on a specified banker and not expressed to be payable otherwise on demand.
What is the maximum punishment in a cheque Dishonour case?
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 rule of cheque bounce?
A cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 (“Act”) punishable with a fine which can extend to twice the amount of the cheque or imprisonment for a term not more than two years or both.
Is Section 138 a bailable offence?
No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Further, the offence is non-cognizable so the police cannot arrest without a warrant.
How can I get bail in section 138?
Section 138 of Negotiable Instruments Act, 1881 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank …
Who can send notice under 138?
When the cheque bounces due to insufficient funds and is returned by the bank, the payee should send a legal notice to the drawer of the cheque asking to make the payment. Cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 in India.
How many times can a cheque bounce?
The bank may stop the cheque book facility or even close your account. Although the Reserve Bank of India states that such action can be taken only if cheques, valued Rs 1 crore or above, have bounced more than four times.
How many times a cheque can be bounced?
What is the difference between cheque bounce and cheque return?
When a cheque is Dishonoured or bounced, the drawee bank immediately issues a ‘Cheque Return Memo’ to the payee’s banker mentioning the reason for non-payment. When a cheque is Dishonoured or bounced, the drawee bank immediately issues the ‘Check Return Memo’ to the payee bank by mentioning the reason for non-payment.
How many times a cheque can be endorsed?
Answer: The simple answer to your question is “yes”. You can present the cheque more than once in the bank during its validity period. It can be done twice or multiple number of times, provided the cheque is presented during its validity period.
How do you get bail in 138 ni?
What is the bail amount for cheque bounce case?
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.
What is section 138 of the Negotiable Instruments Act 1881?
Section 138 in The Negotiable Instruments Act, 1881 18 [ 138 Dishonour of cheque for insufficiency, etc., of funds in the account. Explanation.— For the purposes of this section, “debt or other liability” means a legally enforceable debt or other liability.]
What is section 138 and 142 of the Banking Act 1988?
With that purpose Sec.138 to 142 were inserted by Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988. This was done by making the drawer liable for penalties in case of bouncing of the cheque due to insufficiency of funds with adequate safeguards to prevent harassment of the honest drawer.
What is the cheque number of Brack Bank Bangladesh Limited?
Reference: Cheque No. 152645 of Brack Bank Bangladesh Limited, dated the 23 rd day of January 2016. Subject: Notice Under Section 138 of Negotiable Instrument Act,1881 for Dishonor of cheque for an amount of BDT 50,000
What is Section 139 of the Indian Constitution?
Once the execution of cheque is admitted, Section 139 creates a presumption that the holder of a cheque receives the cheque in discharge, in whole or in part, of any debt or other liability, Basalingappa v. Mudibassapa, 2019 SCC OnLine SC 491.