Within what time can I expect justice for a check bounce case? (either I have to get money or action against the person who issued the check). If he fails to pay, what would be the minimum and maximum legal action against that person?
What would be the approximate court expense and lawyer fee (pls mention yours) for undertaking the check bounce case? (In my case the check bounce amount is RS 50,000). Bouncing of a cheque invites criminal prosecution under section 138 of The Negotiable Instruments Act, 1881. Punishment for the offence under section 138 of the NI Act is imprisonment up to two years or fine which may extend to twice the cheque amount or both. The offence is bailable, compoundable and non-cognizable.
Proceedings for the dishonor of cheque must be issued if the cheque was issued in the discharge of lawful consideration. If it was issued for other purposes, any illegal gratification or any purpose mentioned in section 23 of the Contract Act, then no offence is made out on the dishonor of that cheque.
The payee makes a demand for the payment by giving a notice in writing, within 30 days of the receipt of information by him from the bank. When the drawer fails to make payment of the said amount of money within 15 days of the receipt of the said notice cause of action arises. The complaint should be made within one month of the date on which the cause-of-action arises.
According to the above mentioned legal provisions minimum, 45 days is required for filing of the complaint. It is a complaint case and it follows a summary procedure. The case will be registered on your complaint and notice will be issued to the accused. The court shall pass judgment on the recording of statements and appreciating the evidence adduced from both parties.
If both parties are taking interest in deciding the case then it’ll take 6 months to decide. Otherwise, it may take 1 to 3 years. I think Rs. 5000 will be the genuine fee for this case.
