In today’s times, check bouncing has become a serious financial problem. Thousands of people face this problem every day, where they are supposed to receive money, but the bank dishonors the check. This often results in significant financial loss for the victim. Legal action can also be taken against the accused after a check bounces.
In Indian law, such cases are considered serious crimes, and a case can be filed under Section 138 of the Negotiable Instruments Act, 1881. Therefore, it is essential to know where to file a complaint in case of a check bounce and how long the case can take to be heard.
Where to File a Complaint
The police do not directly register an FIR (First Information Report) in cheque bounce cases. The police can only register a case if the matter is of a criminal nature, or if there is an angle of fraud or criminal conspiracy. Under normal circumstances, the victim must file a complaint in a Magistrate’s Court.
In a check bounce case, the complainant cannot file a case in any city. The jurisdiction to file a case will be limited to the place where the check bounced or where the check issuer has a bank account. This rule is necessary to keep complaints systematic.
Legal Process for Filing a Check Bounce Complaint
The legal process for check bounce cases in India is quite clear, and the law also sets a time limit for it.
- If a check bounces, the first step is to send a legal notice to the accused within 15 days. This notice makes a clear demand for payment.
- If the accused fails to make the payment within 30 days of receiving the notice, the complainant can file a case in the Magistrate’s Court.
- After the case is filed, the court issues a summons to the accused. If the accused fails to appear, an arrest warrant may also be issued.
Trial Time and Punishment
After the legal process is initiated, the trial begins in court. However, pending cases and legal procedures can cause delays. However, efforts are generally made to resolve such cases as quickly as possible, as they involve direct financial loss. If the accused is found guilty, they could face up to two years in prison, a fine of up to twice the amount of the check, or both. This strict provision makes the check issuer responsible for payment.
The Important Role of a Lawyer in Check Bounce Cases
The lawyer’s role in check bounce cases is crucial. They not only ensure timely service of the notice, but also strongly present the case in court. They assist throughout the entire process, from gathering evidence to proving the accused guilty. They also ensure that the victim receives their money back as quickly as possible. Documents such as a copy of the check, the bank bounce memo, the legal notice sent to the accused, and proof of notice service are essential when filing a case.