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How to Deal With False Cheque Bounce Case ?

Advocate Bindu > Corporate Law  > How to Deal With False Cheque Bounce Case ?

How to Deal With False Cheque Bounce Case ?

Shadow of a man sitting behind bars under section 138

What is Cheque Bounce Case ?  

A cheque in simple terms mean the document which orders the bank to pay a stipulated amount from the sender’s account to the receiver’s account i.e., the person to whom the cheque is issued. This has been considered as one the most important financial activity across many nations in the world. The cheque can be used by anyone from individuals to a group of people such a company or even the government. These transactions done using cheque is done in various amounts. The cheque issued can also be called as a negotiable form or paper which is used for changing the money into physical entity. This will be done even in inter – account transfers. There are various types of cheques namely Bearer Cheque, Order cheque, crossed cheque, open cheque, Self cheque etc. The three main types include certified cheques, Cashier’s cheque and payroll cheques.

Similarly like every event sometimes even in the cases of filing cheque some mistakes happen. The event when a cheque has not been deposited successfully is called as Bounce of cheque or Cheque Bounce. This happens because of various reasons.

The main reason is when there are not sufficient funds in the account of the person issuing the cheque.

Cheque bounce also occurs when there is a mistake in the date or the date has not been written legitimately.

The cheque bounce also happens when the date is older than three months, in these cases the bank has the power to bounce the cheque.

Other reasons include if the signature in the cheque does not match the bank records; bounce of cheque will take place when the amounts differ in written words and numbers.

If there are any unwanted stain, marks, scribbles, overwriting, corrections etc then the bank can bounce the cheque.

In spite of all this people today prefer to issue cheques because this will permit people without bank accounts to make chaos-less payments. Many do not prefer internet banking and hence will opt for the issuing of cheque. Therefore, the cheque bounce cases are increasing every day. The Legal provisions for the cheque bounce cases are mentioned under Section 138 of the Negotiable Instruments Act of 1881. Many a times even these cheque bounce will be exploited falsely to gain money from anyone or to ruin their reputation. These false cases are being filed against innocent people who are forced to face various legal issues. This is because they are not in aware of the process properly and fall prey to the scam.

Legal remedies in false cases against you for Cheque Bounce:  

The Indian law has also laid down legalities for people who become victim to the false cheque bounce cases.

Simply they can prove their validity by showing the necessary legal documents that show that they had sufficient balance which shows that the cheque bounce could not have possibly happened.

Some methods which can be used to handle the false cheque bounce cases are, they can collect all the necessary documents which will easily prove the victim’s innocence and finish the case easily.

Another method is that the victim can hire a corporate lawyer and Adv. Bindu Dubey is one of the top corporate lawyers in Mumbai who will help with filing the legal notice of the Bank because it is a very tedious and painful process.

If anyone is being framed for false cheque bounce case then they have the complete authority to file a counter case against the person who showed the false cheque bounce. The victim will be allowed to get compensation under the civil law for false accusation.

For any false cheque bounce case the main ingredient is to get in touch with the bank and retrieve all the information with respect to the dishonour of the cheque.

The bank is mandated to notify the sender if there are any issues with respect to the cheque bounce case and then eventually the victim can ask the bank regarding further details.

There are few documents which will have to be in possession of the victim of the false cheque bounce case. They are the bills received while making the payment; the invoices of all the payments; the bank account statement; bank draft cheque and the copy of the issued cheque.

It is advisable for everyone to have two three copies of all these documents as during the case the authorities will demand for these documents.

LEGALITY OF THE CHEQUE BOUNCE CASE:

When we look into the legality of the False cheque bounce cases Section 138 of the Negotiable instruments Act 1881; has laid the provisions for the cheque bounce or the dishonour of cheque.

It mentions “138 Dishonour of cheque for insufficiency, etc., of funds in the account.” Very recently this section has been de-criminalised as it has been considered as a minor offence by the court.

The primary and important reason for de-criminalising this section is to promote further foreign investments in our country.

As because of the corona Virus Pandemic the Indian economy has fallen down very bad and needs various methods and ideas by the government to handle this issue and hence de-criminalising many sections paved a small way to regain the economy and one such section is the Section 138 of the Negotiable Instruments Act of 1881.

This section 138 mentions that the dishonour of cheque is a criminal offence and the penalties have been given as prison time of up to two years or can claim compensation in monetary form or can be charged with both.

With the increasing global economy and India being a developing nation the false cheque bounce cases are increasing in huge numbers and hence it is very important for everyone to know all the basic facts about cheque bonce and the fraud involved in it. And when even after such prevention there are some glitches because of unavoidable situations then it is best advised to consult the finest lawyers known in these matters and Adv. Bindu Dubey is one such fine Advocate who deals with corporate cases in Mumbai.

[1] Negotiable Instruments Act, Section 138

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