138 negotiable instrument act / cheque bounce cases
Our Law Firm provides legal services and information: For the Knowledge of Clients, who is involved in the cases of Section 138 Negotiable Instrument Act, must know the following Procedure of Law:
- under provisions of negotiable instruments act.sec.138, a legal notice on behalf of complainent is issued to the defaulter whose cheque is dishonoured. It should be issued within 15 days of dishonour of cheque by registered post, all facts including the nature of transaction, amount of loan and / or any other legaly enforceable debt against which the said cheque was issued and the date of deposit in bank and date of dishonour of cheque should be mentioned in the notice.
- the person who has issued cheque is directed to make the payment of amount of dishonoured cheque within 15 days. In case the said payment is made within 15 days of service of notice then the matter ends.
- in case the said payment is not made within 15 days then the complainent has to file a case in the court within 30 days from the expiry of notice period of 15 days.
- kindly note that in section.138 negotiable instruments act. Cases , police has the limited roll to play ,only service of summons and in case if accused remains absent on court date after service of summons then only warrant is sent to police station to produce accused in court.
- it is observed in several cases that accused persons are harassed by concerned persons who are directed to serve notice/warrant.
- it is advisible that accused should not be afraid of this court case and regularly attend court dates so that warrant will not be issued and further unnecessary harassment will be prevented.
- kindly note that offence under section 138 of negotiable instruments act is a bailable offence.
- in case the accused is acquited then matter ends but in case accused is convictedthen immediately accused should submit bail application and givesurety and pray for time to appeal in sessions court. He should appeal to sessions court within one month from the date of judgement of lower court.
- kindly note that the dispute may go on from district and sessions court to high court and then to supreme court.
DISCLAIMER: This article is for general information purposes only. Always consult a Lawyer before you proceed with your case. Your situation might need a different approach.
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