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How is an NGO, a Trust and a Foundation Different?

From a legal standpoint, there is hardly any difference. An NGO or a Foundation cannot be registered. The legal viewpoint is that an NGO has one of three entities; its either a Public Trust or a Society or a not-for-profit organization or foundation. Under the Income Tax Act, all 3 entities are tax-exempt entities.Both trust and society alike are two types of a non-profit or non-government organization in India. Therefore if anyone intends on doing social work and for this purpose needs a legal entity, then either a trust or a society can be registered. One can also register a company under section 25 but in most cases, a registered is a norm or society for benevolent work.Trust is a comparatively simpler entity and can be easily registered and operated. Such organizations are fundamentally rooted in trust. Donations are purely based on trust that the donated funds would be fully utilized to serve the purpose mentioned in one’s trust deed. Trustees do not owe any explanation to anyone other than the Charity Commissioner and the applicable laws. Any tax breaks u/s 80g and 12a can be revoked if trustees do not abide by the rules, laws, and regulations of the Income Tax department. Analyzing NGO Registration people seem to think that even with lack of funds if NGO registration is done then their goals and objectives can be attained. Truth is as quickly as some NGOs are being registered they are also winding up quickly or even leaving it in the middle. If NGOs are registered with the intention or mindset of obtaining external grants and donations then such NGOs would not be sustainable in the long run. A company donating a chunk of funds to charity on a regular basis, then in such cases an NGO can be registered with enhanced sustainability planning.  In India, there are many registered NGOs only on paper and only about a little over half of NGOs are actually working for the betterment of society. NGOs can be formed in no time at all. However, when project funds from local government schemes or contributions from foreign countries are on hold indefinitely then the entire NGO comes to a screeching halt. Rather than looking for easier options for forming an NGO, for NGO registration its imperative to analyze the actual requirement and the strength to form, manage and maintain such NGO is far more important.Call 7604047601 for consultation with a registered expert Trust and Society NGO lawyers on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Why is RTI Amendment Bill So Controversial?

Although the Lok Sabha has passed and ratified The Right to Information Amendment Bill 2019 the Opposition is dead against it. Invectives like ‘dangerous’ and ‘dark day for democracy’ have been hurled against the bill. Changes have been suggested in regard to the terms and conditions of appointment of information commissioners at the center and state levels. The three provisions of the RTI amendment bill have been challenged by the members of Opposition in Parliament and by protesters in the field.Nonetheless, prior to going forward, the basic things that the RTI Act of 2005 does is based on the existing law which says that the public authorities are required to disclose on·        their organization, functions, and structure·        rights and duties of its officers and employees·        financial dataIf the public authorities do not provide the required information of their own volition, then, in that case, its citizen’s right to demand it from them based on the RTI Act. "Public authorities" refer to ministers and government servants among others.The head of the central information commission is the chief information commissioner and other information commissioners appointed by none other than the President representing the Central Government for a fixed term of five years with the salary of the chief election commissioner’s, as well as the election commissioner's salary respectively. The intent and purpose of this initiative were granting autonomous powers to the central information commission as well as provide protection from government surveillance. The amendments ` ` ` `The RTI amendment bill of 2019, excludes the five years tenure of the chief information commissioners and the information commissioners. The payouts on account of salary have been revised. Separate notifications will be sent by the government to both. Politically, what this means is that the government can and will pose a threat or entice the chief information commissioner and information commissioners with random removal or extension and curtailment or increase in salary depending upon their suitability for the ruling dispensation.Call 7604047601 for consultation with a registered expert right to information lawyer on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Consult Top Cheque Bounce Lawyers in India

Kishan Dutt Kalaskar Retired Judge

Kishan Dutt Kalaskar Retired Judge

Retired Judge
Exp
Bangalore , Karnataka

Specialization

  • Cheque Bounce
  • Civil
  • Criminal
  • Divorce
  • Domestic Violence
Retired Judge 20 years service as Judge in different capacities. Read and prepared Head Notes for more than 10,000 judgments of different High Courts and Supreme Court. Head Notes published by various Law Publishers. Now preparing Head notes for www.scconline.com. Worked in different capacities an View Full Profile
Total Answers Given : 5337
Neeraj  Kumar

Neeraj Kumar

Advocate
Exp
Patna , Bihar

Specialization

  • Cheque Bounce
  • Employment and Labour
  • Bankruptcy and Debt
  • Contracts and Agreements
  • Consumer Protection
I am a practicing Advocate at Patna High Court & Delhi High Court having experiences in handling the cases related with Family Disputes, Property Disputes, Service Matters and also the matter related under SARFAESI Act. Apart from the above I am having experiences in Consumer and Labor Cases too. View Full Profile
Total Answers Given : 129
Mrighankhi  Chakraborty

Mrighankhi Chakraborty

Advocate
Exp
Kolkata , West Bengal

Specialization

  • Cheque Bounce
  • Divorce
  • Family
Hi, This is Mrighankhi Chakraborty I have graduated from University of Calcutta and I am a practicing Advocate. I deal mostly with Divorce cases with exp of 1-1.5yrs. My prime area of expertise is in matters related to Family Disputes, Divorce, Domestic Violence, etc View Full Profile
Total Answers Given : 74
Pavan  kumar Gudipati

Pavan kumar Gudipati

Advocate
Exp
Hyderabad , Telangana

Specialization

  • Cheque Bounce
  • Civil
  • Commercial
  • Administrative Law
  • Tax-Income Tax
I am willing to take up cases at the High Court of Telangana, Company Law ( NCLT), Cheque Bounce cases, Mutual Divorce cases, DRT, IBC. I am willing to take up cases in Hyderabad in any Tribunal / Court. I am a Fresher and willing to take up cases. Contact Time : 6pm to 9pm View Full Profile
Total Answers Given : 66
Prashant  Mane

Prashant Mane

Advocate
Exp
Pune , Maharashtra

Specialization

  • Cheque Bounce
  • Civil
  • Arbitration and Mediation
  • Consumer Protection
  • Commercial
Iam Prashant Mane more than 10 year of experience in civil, contract, arbitration, consumer, labour, insurance, cheque bounce cases. I also have experience in corporate documentation. View Full Profile
Total Answers Given : 51
Advocate Upadhye & Associates

Advocate Upadhye & Associates

Director /Advocate/Head counsel
Exp
Pune , Maharashtra

Specialization

  • Cheque Bounce
  • Divorce
  • Cyber, Internet, Information Technology
  • Corporate and Incorporation
  • Advertising
Chief Legal Counsel at Advocate Upadhye and Associates View Full Profile
Total Answers Given : 36
Mural Krishnan  Sanjeevi

Mural Krishnan Sanjeevi

Advocate
Exp
Chennai , Tamil Nadu

Specialization

  • Cheque Bounce
  • Divorce
  • Child Custody
  • Civil
  • Muslim Laws
Am 13 years experienced lawyer in all the legal matters. My goal is to provide the best legal and practical solutions to my clients. My are of practice are Arbitration, Anticipatory Bail, Bail , consumer dispute, Divorce. View Full Profile
Total Answers Given : 28
Tabassum  Sultana

Tabassum Sultana

Advocate
Exp
Bangalore , Karnataka

Specialization

  • Cheque Bounce
  • Divorce
  • Domestic Violence
  • Child Custody
  • Criminal
Advocate with experience in Divorce Cases, Child Custody, Domestic Violence, Registration of Marriages, Criminal Law (Regular and Anticipatory Bail), Cheque Bounce Cases, Drafting of all kinds of Agreements and Legal Notices, Muslim Laws.. View Full Profile
Total Answers Given : 16
Rajeev  Srivastava

Rajeev Srivastava

Senior Advocate
Exp
Ghaziabad , Uttar Pradesh

Specialization

  • Cheque Bounce
  • Motor Accident
  • Criminal
  • Divorce
  • Consumer Protection
Practising since 1984. I am having good experience in handling the cases related with Divorce, Domestic violence, Maintenance, Criminal, Accident claims, Workmen's compensation claims . Real estate disputes, Insurance cases, and consumer cases including RERA View Full Profile
Total Answers Given : 12
Ramgopal  Aiyer

Ramgopal Aiyer

Managing Partner
Exp
Mumbai , Maharashtra

Specialization

  • Cheque Bounce
  • Criminal
  • Banking
  • Commercial
  • Family
Managing Partner of Kaleeyantey Law Firm presently having offices in Mumbai and Navi Mumbai handling Litigation and Non Litigation matters on Civil side and Criminal side as well. View Full Profile
Total Answers Given : 3
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Common Questions for Cheque Bounce

  • What is cheque bounce?
  • What are the ways or reasons that a cheque can bounce for?
  • What happens when there is cheque bounce?
  • Who is liable to pay in case of Cheque bounce?
  • What is legal recourse for cheque bounce for the payee and for the payer?
  • What is the maximum penalty and punishment for cheque bounce?
  • Can out of court settlement happen in case of cheque bounce case?
  • Will cheque bounce case still hold good when the issuer has gone bankrupt?
  • Can I pay the amount while the case is going on, and get the case closed?
  • Will marking a cheque STOP amount to cheque bounce?
  • Can I get arrested for cheque bounce?


Cheque bounce stall the normal transactions in commercial world and thus hinders the growth in business. Since it affects the business cycle in a big way, so the lawmakers have made the cheque bounce as criminal offence and punishable act.

Vidhikarya will help you find a most suitable lawyer, for you in your city, who will be able to answer all your cheque bounce related queries, whether you are the issuer of the cheque or payee, and also guide you on how to resolve this matter with ease.

About the Cheque Bounce Laws


A bounced cheque or a dishonoured cheque is a situation wherein the payer’s Bank abstains from making the payment to the payee for different reasons like mismatch in the signature/account number, insufficient funds in drawer’s account, etc. Bouncing of cheques is a statutory offence (criminal offence), and there are legal conditions to be followed in the event of a cheque bounce.

Once a cheque bounce has happened and the payee has initiated a case then the defaulter has no option but to either pay the amount with in the stipulated time or else defend the case in the court. In either case he has to engage a lawyer to help him sail through this legal tangle.

So, what Vidhikarya can do for you is that it will help you in finding and engaging a right and suitable lawyer for your cause.

We at Vidhikarya endeavour to help you and assist you in finding the right lawyer in your city or otherwise so that you can go ahead and peacefully get your legal matter resolved. You do not have to worry on how to hire a lawyer or find an advocate for your matter. You can simply dump the question of “find an advocate in my city” to Vidhikarya and just relax.

What the cheque bounce law is and what it does?


Section 138 of the Negotiable Instruments Act 1881
Section 138 of the N.I. Act makes dishonour of cheque for insufficiency of funds a statutory offence. As per this provision, bouncing of any cheque issued for a legally enforceable debt or liability can be a ground for a lawsuit with certain conditions.

Conditions for applicability of Section 138 of N.I. Act
Cheque must be drawn within a period of three months from the date it’s drawn or within the period of its validity, depending on whichever date is earlier.

The holder (one who was supposed to get the money after depositing the cheque) has to demand for the payment of the bounced cheque within 30 days from the day when he was made aware about the return of the concerned cheque as unpaid.

The drawer of the cheque must have failed to make payment of the concerned amount to the payee within 15 days from the date of receiving the ‘Notice’ spoken of in the above point.

The debt must be a legally enforceable debt, the burden of proof of proving the illegality of the debt lies on the drawer of the cheque.

What are the applicable laws to Cheque bounce?


Indian Penal Code, 1860
Section 420 of the Indian Penal Code may be attracted:

Supreme Court in the case of ‘Sangeetaben Mahendrabhai Patel v. State of Gujrat’ has held that simultaneous proceedings under Section 138 of the N.I. Act and Section 420 of the Indian Penal Code(IPC) for a case of cheque bounce is permissible.

However, the dishonest or malafide intention has to be shown by the prosecution to invoke a case under Section 420 of the IPC for an instance of cheque bounce, and this provision does not deal with recovery of money.

Section 138 of the Negotiable Instruments Act 1881
Section 138 of the Negotiable Instruments Act is applicable to cheque bounce case. In fact, this Section of N I Act was specifically enacted to curb the rising cases of cheque bounce which was creating unnecessary roadblocks to the businesses.

Some important facts and cases about and under Cheque Bounce law


The Offence under the Cheque Bounce is compoundable
The offence punishable under Section 138 of the Act of 1881 is primarily related to a civil wrong and the Amendment [The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002] of 2002 specifically made it compoundable.

The Hon’ble Supreme Court in Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663, held that the Accused could make an Application for compounding at the first or second hearing in which case the Court ought to allow the same. If such Application is made later, the Accused is required to pay higher amount towards cost etc. It was also held compounding could not be permitted merely by unilateral payment, without the consent of both the parties.

No need of “mens rea” or guilty mind to be proved
In Mayuri Pulse Mills v. Union of India, Court held that for an offence under Section 138 of N.I. Act, mens rea is not essential as the section brings into operation the rule of strict liability.

Jurisdiction for filing a cheque bounce case
In Dashrath Rupsingh Rathod v. State of Maharashtra it was held that a complaint regarding “dishonour of a cheque” can be filed only in the Court within whose local jurisdiction the offence was committed, i.e., where cheque was dishonoured.

Technical Reasons can not be grounds for Cheque Bounce case
Reason for the bouncing of cheque should not be of a technical nature, as technical irregularities are not covered by the provisions of Section 138 of the N.I. Act. For example, bouncing of a cheque due to incorrect date entered, or due to discrepancy between amount in words and figures, not being in MICR form, etc.

Important Procedures under Cheque Bounce law


  1. Cheque must be presented to the bank for payment within a period of three months (earlier it was 6 months) from the date mentioned on the cheque.
  2. In case the cheque gets bounced, the holder of the cheque should ask the payer or issuer for the payment by giving a legal notice to the drawer in writing within 30 days of the receipt of information of non-payment by the bank.
  3. Even after receipt of notice if the drawer of the cheque fails to make the payment within the stipulated time, which is 15 days from the receipt of notice then the cheque holder or the payee can move the court.

Reliefs available under Cheque Bounce Laws


Fine and Punishment under Section 138 of the N.I. Act
Punishment for the above-mentioned offence is a fine which may extend to twice the amount of the original cheque or imprisonment for a term which may be up to two years or both.

Interim Compensation can be ordered
Court can pass an order to pay interim compensation during the pendency of the court. (This law is getting enacted)

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Top Responding Lawyers
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