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Cheque Bounce

Cheque Bounce Case

Hi Vidhikarya legal team, My family had lent an amount of 7.5 lakhs in July 2018 for a person for his personal/business purpose and he promised to return within three months but he failed to return. So ,we bounced two separate cheques that he provided to us (one each on my and mother's bank account) in October 2018 . We did not proceed legally as he convinced us not to do so and he will arrange he money soon after that cheque bounce. The borrower is giving dates from then on to return our money but not honouring to any dates. He did not provide any money after wards. Every week, he promises to give in the upcoming week with interest for period of July 2018 till now and never gave a single rupee. We still have two more blank cheques collected after the first cheque bounce and still not used. We intend to do the cheque bounce soon and proceed legally this time. I have multiple call recordings of him saying that he will return money in coming days. My queries are: 1) If we bounce the cheques , how powerful will my case be with all call recordings and how soon can it be resolved? We have dependency on the money for a family marriage. 2) If the cheques he provided are invalid now (if those bank accounts are closed, etc) , can we put a criminal case? 3) I heard in cheque bounce cases like these, the victims will get 20% of cheque amount immediately after filing case. Is it true? 4) We need assistance in sending legal notice in case if cheques can be bounced now and proceed legally. We are based out of Bangalore, Karnataka. Please let me know for any additional details required.

( Bangalore, Karnataka )

4 years ago

Reply

I am of the opinion that this is not a case for IPC 420. And also this is not a police case.

Prabhakara S K Shetty

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Cheques are not invalid.
police will not take FIR so you can file private case of 420.
but most important is legal notice because on that complete case will stand and a small mistake on that or you recording can completely change the fate of your case.

Timing depends on the court of your area. Some judges are faster and strict and some are lenient.

You will not get 20% immediate as it can be deposited in bank account also or court can agree for less amount.

Vidhikarya

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Cheques are not invalid but now prescribed period for filing complaint case under negotiable instruments Act has expired. As per new negotiable instruments Act court is empowered to grant 20% if cheque amount irrespective of merit of case and this is liable to be adjusted or be refunded depending upon fate of the case. You can file recovery suit on the basis of cheque issued and can also report the matter to police.

Vidhikarya

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Dear sir,
Cheque bounce case is more effective. Courts are granting only ten percent.

Kishan Dutt Kalaskar

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Before taking any further step in your case do seek a local advocates suggestion as a small mistake or latches on your part can totally change the fate of your case more so when you want to proceed against him under NI Act, 1881.

Now it seems you have all the ingredients to make out a good case under Section 138 of NI Act 1881.
It would take around 1 year to get the case adjudicated.

Yes you can go ahead with the criminal case anyway.

No there is no provision for 20% immediate or advance payment.

If you need someone based outside bangalore to issue the legal notice then I would be ready to help you though I would strongly suggest that it will be in your best interest that you hire someone locally to do the same.

#ChequeBounce

#freeLegalAidOnChequeBounce

Vidhikarya

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You can send statutory Legal Notice once the deposited cheque is returned unrealized and then file criminal complaint in appropriate jurisdictional Court of Magistrate with Bounced cheque, Bank cheque return memo Copy of Notice and Notice delivery postal receipts and acknowledgment. Additional evidence if available like Agreement and call or sms or any eye witnesses are required at the time of your evidence filing. Chances are although bright of recovery of amount through 138 NI Act cases evidence plays important role in it. Not immediately but once party appears and pleads NOT guilty, Magistrate can order amount of 25% to be deposited in Court which the complainant can withdraw after permission from the Court. This amount will have to be returned if the Accused gets acquitted in such case. Strong and proper Legal Notice many times plays great role in 138 cases as considerable cases are resolved at Notice stage only. For further details plz contact through Vidhikarya.

Vidhikarya

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Good Eve Teja,

After reading the above instances you've mentioned, I am of opinion that you have a very strong case u/s 138 of Negotiable Instruments Act and you also may proceed parallelly with 420 IPC Fraud at JMFC Court and also Summary Civil Suit of Recovery, however the strong base of the case can only be casted in the very beginning as initially you are required to file police complaint and issue legal notice/s to the accused and your original story of claiming amounts being complicated has to be newly formed only based upon the remaining 2 blank cheques' you possess, as even bringing small changes to your complaint idea / story in later stages of any suit may result in shattering of your legal right of recovery. some crucial points are to be mentioned by you such as:
1. if signing of any agreement took place either on letter-head or stamp-paper between both parties ?
2. What is the mode of transfer of given loan amount?
3. When were the cheques issued in your favor?
4. Till now, what is mode of payment of interests you have received from borrower?

Legal notice and police complaint here are going to form very basis dealing with crucial future trajectory of your cases so future amendments leading to loosening of case can be avoided, I am a High-court level Law-Practitioner based in Maharashtra, India, Specialized in Negotiable Instruments cases, I try to empower people by helping them know about their legal rights as much as much as for free-under my capacity, if you do happen to like my answer you may procced to get the the Strong Legal Notice served on accused at a highly economic fee possible, feel free to reach me out for further advise vide finding me on google, or by contacting the Vidhikarya for my details.
Have a lovely day.

__Adv. Yogesh Tahiliani
(ADVOCATE, BOMBAY HIGH COURT, NAGPUR BENCH)