How to Escape From a Cheque Bounce Case?

How to escape from a cheque bounce case, is a very different case where in India a bounced cheque triggers a criminal offense under section 138 of the Negotiable Instruments Act. 

So there could be many reasons why the cheque was returned, so it also includes insufficient funds or stopped payments. So section 138 punished violators with severe punishments such as fines and prison.

What is a Cheque Bounce Case?

This case is a different case everyone has to know about this case as the cheque bounce case section 138 of the Negotiable Instrument Act 1881, is applicable when someone pays a legal debt with a cheque and the cheque is also returned unpaid because there is not enough funds to cover this. 

So a cheque is considered as having bounced for the reason which is listed below:

• Insufficient Balance in the account can cause the cheque to bounce case.
• A dispute with regard to the authority of signature can also cause the cheque to bounce.
• Stop payment can also be a reason for the cheque bounce.
• The account has been closed can be a reason for this special case.
• Exceeds the amount which is agreed between the parties can cause the cheque to bounce.
• The cheque is overwritten can also cause this situation.
• If the account number is not matched can also cause the case of cheque bounce.
• If the drawer check must have been delivered to the financial institution while it was still valid, as three months after the check issuance. 

Conditions Essential in Case of Cheque Bounce

Here are the conditions that are essential in the case of a cheque bounce

• Legal warnings, are within 30 days after the cheque bounces, and the payee is required to issue a legal warning or notice is also a reason for this specific case. 
• Non-payment after receiving the legal notice that the issuer has 15 calendar days to the style payment.
• A legally binding debt is a cheque that must be issued in order to satisfy a legally enforced debt.
• Insufficient funds, where the cheque is dishonored due to insufficient funds. Or there are other reasons specified in section 138.

How to Escape a Cheque Bounce Case?

Here are some escape a cheque bounce case given below,

• Unaccounted Loan: In this loan, the cheque is related to the unaccounted transactions of cash which may not be eligible for legal recoveries under section 138. So the accused must prove that the loan was made for the unaccounted cash. 
• Stop Payment Request: Here the cheque bounces reason is when the drawer stops the payment order, but the capital is sufficient. The accused may argue that external factors the responsible for the payments being withheld.
• Security Deposit Defence: Here the cheque may not be covered by section 138 as it was issued as a security and not as a deposit. So it is a burden of the proof on the accused to the distinction proof.
• False Cade Response: Here when the falsely accused of the cheque bounce, then the people can counter-sue the single individual for filling the fake case. And it includes all criminal action, seeking compensation, and defamation for any losses which is incurred.
• Disputed Signature: Here the accuse challenges the validity of the case if there is a discrepancy between the signature on the cheque page.

Well, if you want to successfully escape the cheque bounce case in India then for this you must have a great strategic legal defense. In fact, thorough knowledge of the applicable laws in this case. 

So it is important to hire a competent lawyer who can navigate the complexities involved in the cheque bounce case. And then protect individual rights. 

 So it is crucial to seek legal advice as soon as possible. As you are facing the false accusation or the allegation. So this will protect you from the reputation, and the financial interests.

Steps to follow for the Cheque Bounce Case In India

Here are some steps to follow for the cheque bounce cases, let’s have a  look at these cases,

• First always try to negotiate with the payee, as you can work out the deal with the single individual, or the payment schedule or resolve all issues out of the court to pay the payee the money owed. So this will probably need to be negotiated with the payee. The legal representative to get a mutually agreeable solution.
• Then hire a lawyer, where they advised that you retain the services of the lawyer with experience handling the cheque bounce issue so if the case proceeds to trial. Well, here a lawyer can advise me on what to do next. And also assist the people to understand the legal system.
• After that, contest the case, where the people can challenge the case in court if the people think that they have not done any fault, so here to support the case where people may need to provide proof of the payment or other paperwork.

Conclusion

In conclusion, here we have mentioned all such details, that you have to know about the cheque bounce case. And also discusses what is the cheque bounce case, How to escape a cheque bounce case, steps, and many more. We hope the given information in this blog about “ How to escape from a cheque bounce case” is helpful and informative.

FAQ

In India How to file a cheque bounce case?

In the case of a cheque bounce, here you can file a complaint under section 138 of the Negotiable Instrument Act of 1881 to get your money back. So following the filing of the complaints, the accused will receive a summons from the court. So if the people do not show up a warrant for their arrest then it may be issued.

How to get bail in the cheque bounce case in India?

Well, it's a bailable offense, where you can be guaranteed bail if the only offense is an instance of a cheque balance. In order to ensure the attendance at the court. So the court could ask you to provide the surety or a bond. So a certain sum of the money can be requested to be deposited. As the security by you or the surety by you.

What is the punishment for the cheque bounce case in India?

Here according to section 138 of the Negotiable Instrument Act 1881 act. The cheque bounce case punishment carries a maximum of 2 years in jail. A fine up to double the value of the cheque or both of them.