138 Section For Cheque Bounce

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138 section for cheque bounce. After the cheque bounces one has to send a notice to the defaulter of the cheque given by. Imprisonment which may extend to 2 years. A fine double the amount which was supposed to be paid.

If the creditor will not get any reply from the debtor then within 15 days. This section 138 notice format is drafted by our legal and law experts. Posted on november 16 2018 december 16 2018 by adv.

Under section 138 of the negotiable instruments act 1881 a person who commits the offence of cheque bounce is liable for the punishment of imprisonment for a term which may be extended to two years or with fine penalty which may extend to twice the amount of the cheque or with both imprisonment and fine penalty. Section 138 describes the above ground of insufficient funds in the account of the drawer of the cheque in the following words. An aggrieved person is required to send a legal notice within 30 days from the date of cheque bounce.

Cheque bounce is governed under section 138 of the negotiable instrument act. The amount of money standing to the credit of the account of the drawer on which the cheque is drawn is insufficient to honour the cheque or. Conditions for application of section 138 of negotiable instruments act 1881.

Process steps in cheque bounce section 138 case. Any offence against cheque as specified under section 138 of negotiable instrument act is a criminal offence and thus the proceedings against such cheque is dealt in accordance with the summary trial provisions of code of criminal procedure 1973 crpc. Notice format under section 138 with pdf this is a suggested notice format under section 138 also called check bounce notice format.

The penalties that can apply to a drawer when a cheque bounces are as follows. Complain under section 138.