Is your cheque got bounced? Don’t know what to do next, where to file the case? Want to know all about the cheque bounce laws of India, this article here will help you with all your problems with cheque bounce.
If you have given a cheque to someone and that cheque has bounced. So here we will discuss what are the laws related to cheque bounce and what is its jurisdiction( where one can file the case). Also, how can you tackle the case of cheque bounce?
JURISDICTION: Jurisdiction of a particular case means in which court that case can be filed. In 1999 Hon’ble Supreme Court of India gave a judgment in the case of K. Bhaskaran. In which the court said that cases of cheque bounces can be filled at 5 places. However, after this judgment, there was a panic situation in the country. And people started misusing the cheque bounce cases. Because of the jurisdiction declared by the Supreme court.
5 Places where cheque bounce cases can be filed:
- Drawing of the Cheque: the place where the cheque has been drawn
- Presentation of the cheque to the bank: the bank where the cheque is presented
- Returning the cheque unpaid by the drawee bank
- Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount.
- Failure of the drawer to make payment within 15 days of the receipt of the notice.
However, taking into consideration all the problems, the Hon’ble Supreme Court changed this situation in 2015. In 2015 there was a landmark judgment named Dashrath Roopsingh Rathod. In that, the court said that “we remove all our past conditions and clear all past laws and from now onwards your cheque bounce case will be filed only in the bank in which you are depositing your cheque.”
This means all 5 places of jurisdiction were removed. The only place where the cheque was deposited will come under the jurisdiction.
This order also had an issue. That if a person wants to disturb the other person he can deposit the cheque in the same bank in a different State. So to clear all the chaos Government of India came up with an amendment. That amendment is still present in the form of law.
Amendment 2015: The offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction.
- If the cheque is delivered for collection through an account. Then, the branch of the bank where the payee maintains the account. Or holder in due course, as the case may be, maintains the account, is situated.
- If the cheque is presented for payment by the payee or holder in due course. Otherwise, through an account, the branch of the drawee bank where the drawer maintains the account is situated.
This means you can only file the case where the drawee has his bank account.
The details given above will help you in your cheque bounce cases. We hope that after reading this article all your quarries regarding where to file Cheque bounce cases are clear.
Still, have any legal doubt, contact the Legal Experts of AapkaConsultant.com
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