Which of the following courts has the jurisdiction for trying an Offence punishable under Section 138 of the Negotiable Instruments Act 1881?
High Court of Andhra Pradesh held that the Court within whose jurisdiction the cheque is given, or where the information of dishonour is received or where the office of the payee is situate, will have jurisdiction to try the offence.
How many times a bounced cheque can be presented?
There is no restriction regarding the number of times a cheque can be presented. However, when you present the cheque and it is dishonoured again, it will give rise to an additional cause of action for filing a complaint under Section 138 of the Negotiable Instruments Act, 1881.
What are the conditions that must be fulfilled in order to initiate proceedings under s 138 of the Negotiable Instruments Act 1881?
To constitute an offence under Section 138 of the Act, the following ingredients are required to be fulfilled:
- A person must have drawn a cheque on a bank account maintained by him.
- The cheque should have been issued for the discharge, in whole or in part, of any debt or other liability;
What is Section 138 of the Negotiable Instruments Act What is its provision?
i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the …
What is legally enforceable debt under 138 NI Act?
It all depends on whether a legally enforceable debt or liability has arisen.” The Appellants urged that the cheques in the present case have been issued as security. The legal requirement with respect to section 138 is that a cheque must be drawn for the discharge, in whole or in part, of any debt or other liability.
Is cheque bounce a bailable offence?
Bail in cheque bounce is a matter of right of the accused as it’s a bailable offence. So you have to give an bail application through your advocate and have to give security as per the orders of the judicial magistrate.
What is the legal action against cheque bounce?
According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.
What are the points you will cover while drafting a notice under Section 138 of the Negotiable Instruments Act, 1881?
138 of the Negotiable Instruments Act, 1881 are:
- The cheque must have been drawn for discharge of existing debt or liability.
- Cheque must be presented within 6 months or within validity period whichever is earlier.
- Cheque must be returned unpaid due to insufficient funds or it exceeds the amount arranged.
Who can send notice under 138?
Only the payee can issue the notice under Section 138 to the defaulting drawer. However, the payee can issue the notice under Section 138 of the Negotiable Instruments Act through an advocate or legal firm.
How do you escape a cheque bounce case?
File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.