NI Act and Money Recovery Suit
2 months ago
Can Cheque bounce case and Money Recovery Suit be filed simultaneously?
A.Dear Client,
A criminal prosecution under Section 138 of the Negotiable Instruments Act can be initiated by the payee or holder of the dishonored cheque against the drawer. Simultaneously, the payee or holder has the option to file a civil suit for the recovery of money under Order 37 of the Code of Civil Procedure. This type of suit is known as a summary suit, providing a quicker resolution as the defendant is not entitled to a mandatory right to defend.
The limitation period for filing a suit for money recovery is three years from the date when the cause of action arises. This means that the payee or holder has a window of three years from the date of dishonor of the cheque to file a civil suit seeking the recovery of the amount.
A criminal prosecution under Section 138 of the Negotiable Instruments Act can be initiated by the payee or holder of the dishonored cheque against the drawer. Simultaneously, the payee or holder has the option to file a civil suit for the recovery of money under Order 37 of the Code of Civil Procedure. This type of suit is known as a summary suit, providing a quicker resolution as the defendant is not entitled to a mandatory right to defend.
The limitation period for filing a suit for money recovery is three years from the date when the cause of action arises. This means that the payee or holder has a window of three years from the date of dishonor of the cheque to file a civil suit seeking the recovery of the amount.
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A.Dear Client,
A criminal prosecution under Section 138 of the Negotiable Instruments Act against the drawer of the cheque can be initiated by the payee or holder of the cheque on its dishonor by the Bank. Also, a civil suit for recovery of money can be simultaneously filed before the Civil Court under Order 37, Code of Civil Procedure. It is a summary suit that offers speedy disposal of the suit as here the defendant is not required to defend as a matter of right. The period for filing a suit for money recovery is 3 years from the date when the cause of action arises.
A criminal prosecution under Section 138 of the Negotiable Instruments Act against the drawer of the cheque can be initiated by the payee or holder of the cheque on its dishonor by the Bank. Also, a civil suit for recovery of money can be simultaneously filed before the Civil Court under Order 37, Code of Civil Procedure. It is a summary suit that offers speedy disposal of the suit as here the defendant is not required to defend as a matter of right. The period for filing a suit for money recovery is 3 years from the date when the cause of action arises.
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