BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint against the cheque bounce before the Magistrate within 30 days of the expiry of 15 days of issuing the cheque bounce notice.

Detailed explanation-3: -The payee must inform the payer of the dishonoured cheque and ask them to inquire about its reason. If the payer believes the cheque will be honoured a second time, they can resubmit it within three months after the date on it. However, if the cheque bounces again, the payer can face legal action.

Detailed explanation-4: -Cheque Law in India The dishonour of cheque is now a criminal offence punishable by imprisonment up to one year or with fine up to the double the amount of dishonored cheque or with both.

Detailed explanation-5: -Q-Can FIR be lodged for cheque bounce? A-An FIR or first information report can be filed under Section 154 of Code of Criminal Procedure, 1973 for offences which are serious in nature allowing the police to arrest without a warrant.