What is the section 138?
Section 138 of the NI Act is a penal provision that deals with the punishment of dishonour of cheque. Dishonour of cheque is not an offence in itself but to become an offence, the following ingredients should be there: The cheque returned by the bank unpaid on account of insufficient funds.
Is Section 138 abolished?
On 8 June, 2020 the Ministry of Finance proposed decriminalizing various minor offences “for improving business sentiment and unclogging court processes”, which also include Section 138 of Negotiable Instruments Act, 1881.
What is the time limit for cheque bounce case?
within 30 days
Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint against cheque bounce before the Magistrate within 30 days of the expiry of 15 days of the issuance of the cheque bounce notice.
How do you escape a cheque case?
4. 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.
How can I get bail in 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 …
How do I deal with section 138?
Legal action 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 maximum punishment for cheque Dishonour?
two years
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.
Is a dead cheque?
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant….
| Q. | ———— is a dead cheque |
|---|---|
| D. | Pre dated cheque |
| Answer» b. Stale cheque |
Can I do fir for cheque bounce?
1. Yes, you can now go for registering an FIR against the person who has given you that cheque. One is registration of FIR. iT WOULD BE UNDER 420, 406 etc of IPC.
Is cheque bounce a crime?
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.