What measures shall be taken to make the enforcement of Section 138 of the Negotiable Instruments Act?
According to sec 138 and 142 of NI act, the drawee has to send a legal notice within 30 days from the date of return (dishonor) of cheque and asking the amount mentioned in the cheque to pay within the 15 days.
What is the penalty given to drawer in as per section 138 when the cheque is Dishonoured?
Since 1881, this Act has been revised several times. Dishonoring a cheque, according to Section 138 of the Act, is a criminal offence punishable by up to two years in prison, a monetary penalty, or both.
What is the punishment for Dishonour of Cheque under Section 138 of the Negotiable Instruments Act?
Section 138 provides that when the cheque is dishonored for insufficiency of funds or for any of the prescribed reasons, the one who is at defaulter can be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or both.
How do you defend a 138 case?
Cheque bounced given as a security If the accused or the drawer of the cheque, proves that the cheque issued, was not in discharge of any debt or liability, while issuing the cheque, and it was just given security deposit, hence it does not attract the offence under the Section 138, of the Negotiable Instruments Act.
Is NI Act bailable?
The offence under Sec. 138, Negotiable Instruments Act is punishable with imprisonment for two years, and therefore the offence is bailable and hence anticipatory bail cannot be granted.
How many times cheque can bounce?
The bank may stop the cheque book facility or even close your account. Although the Reserve Bank of India states that such action can be taken only if cheques, valued Rs 1 crore or above, have bounced more than four times.
Is Sec 138 bailable?
An offence committed under Section 138 is a non-cognizable offence. Also, it is a bailable offence. Offence under section 138 will be completed with following components: Drawing of Cheque by the drawer for the discharge of debt or other liability.
Is cheque bounce bailable?
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.
Is 138 NI Act is bailable or not?
No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Hence, there is no question of any police investigation.
How do you get bail in 138 ni?
Section 138 of Negotiable Instruments Act, 1881 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank …
What action can be taken after cheque bounce?
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.
What is the punishment for bounced cheque?
The punishment for cheque bounce is imprisonment for a term not more than two years or a fine that can extend to twice the amount of the cheque or both. A civil suit can also be instituted against the drawer to pay the cheque amount.
What is section 138 of the NI Act?
Section 138 of the NI Act makes a person criminally liable for fine or imprisonment or both to the person who has issued the cheque. The section imposes both criminal and civil liability.
Is cheque bounce an offence under Section 138 of the NI Act?
It is worth understanding here that the procedures being followed while dealing with the offences under Section 138 of the NI Act are procedures enumerated in the code of criminal procedure. Though the legislature has started making attempts to decriminalise the cheque bounce it is still a quasi-criminal offence.
Is the offence under Section 138 person-specific?
In N. Harihara Krishnan v. J. Thomas, the Supreme Court laid down that the offence under Section 138 is person-specific hence cognizance against the person not being accused till now has to be taken in the same manner in which cognizance was first taken against the earlier accused.
Is section 138 a strict liability?
The Hon’ble Supreme Court observed that when the Act was enacted, Section 138 was incorporated with a specified object of making a special provision by incorporating a Strict liability.