What is Section 138 for cheque bouncing?
Section 138 Of The Negotiable Instruments Act It provides that where a person draws a cheque on an account maintained by him for the payment of money to another person, and it is returned by the bank unpaid because of insufficient funds to honour the cheque, the drawer of the cheque commits an offence.
What action can be taken if a cheque bounces?
If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period.
Who can file a complaint under Section 138 of the NI Act?
A complaint under section 138 of the Act can be filed only by the payee of the dishonoured cheque or by the holder in due course as mandated by Section 142 of the Act.
What is cause of action in 138 NI Act?
CAUSE OF ACTION: Cause of action arises when notice is served on the drawer and drawer fails to make payment of the amount of cheque within 15 days. Limitation to file complaint is one month from the date of cause of action.
Is cheque bounce a crime?
Yes. When a cheque is bounced for insufficient funds in the bank account, it is a criminal offence. The payee can file a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881.
Is 138 NI Act is bailable or not?
An offence committed under Section 138 is a non-cognizable offence. Also, it is a bailable offence.
When to issue legal notice under Section 138 of Negotiable Instruments Act?
A notice served under Section 138 of the Negotiable Instruments Act should be issued within one month of the bounce of the cheque is sent through registered AD post only. Sub.:- Legal notice under Section 138 of the Negotiable Instrument Act.
What are the penal provisions of Section 138 of NI Act?
The penal provisions in Sections 138 to 142 of the Act ensure that obligations in the form of late payments are fulfilled by the issuance of checks. Section 138 of the Act sets out the conditions under which a cheque case is filed. The components required to comply with Section 138 of NI Act are as follows:
What is the time limit for serving a notice under Section 138?
A notice served under Section 138 of the Negotiable Instruments Act should be issued within one month of the bounce of the cheque is sent through registered AD post only. Sub.:-
How to send notice under Section 138 of IPC?
Notice Under Section 138 should be sent through registered AD post only. Notice Under Section 138 has to be issued within one month of bounce of cheque. The case under Section 138 of the Negotiable Instruments should be filed within 15 days of receipt of the date of issuance of the Notice Under Section 138.