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Now days, it is not possible to do business only on the basis of cash transaction and everybody has to rely on the cheques issued by the customer.
However, many times it has been seen that the cheques issued by the customer gets dishonoured. There are so many questions arising as how to recover the money from the customer.
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| Frequently Asked questions:
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| Q.1 How many times Cheque can be deposited in bank for clearance?
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Ans. A Cheque can be deposited any number of times to the bank within a period of six months from the date on which it is drawn or within the period of its validity whichever is earlier.
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| Q.2 What happened if Cheque gets dishonoured/returned unpaid of reasons “Insufficient Funds” or “Account Closed” or “Stopped Payment” or “Referred to Drawer” or “Present Again Effects not Cleared”?
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Ans. In all these circumstances, a case U/s 138 of N.I. Act is definitely made out.
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| Q.3 Who are responsible for dishonour of cheques?
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Ans. Besides the person who has signed the cheques, all Directors/Partners/Officers of the company/firm can also be prosecuted.
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| Q.4 What is the time limit and does any court fee is payable?
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Ans. Firstly, one should have to issue a demand notice within 30 days of the receipt of the information by him from the bank regarding the return of the Cheque as unpaid and if the customer does not pays within 15 days of the receipt of the said notice the aggrieved party can file the criminal case U/s 138 of N.I. Act within one month after expiry of 15 days i.e. demand notice period. The case can be filed within 45 days from the date of notice. There is no court fee.
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| Q.5 Whether one have to appear personally on each and every date of hearing before the Court?
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Ans. Yes, Holder of a cheque or his duly authorized representative must appear before the Court.
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| Q.6 What relief one will get in dishonour of cheques cases? |
Ans. An offender under the N.I. Act 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 with both.
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| Q.7 Can the Cheque be re-deposited after issuing legal notice once?
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Ans. No. Now Cheque cannot be re-deposited. As cause of action has started as per N.I. Act and criminal case has to be filed after expiry of demand notice period of 15 days and then within the validity period of cause of action i.e. one month.
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| Q.8 Why there is so much delay? |
Ans. There are two reasons. One is because multinational companies/banks are filing more and more cases under N.I. Act and secondly, complainant does not file his case properly and as per the mandatory provision of N.I. Act.
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| Q.9 Can a recovery suit on dishonour of Cheque be filed simultaneously with the criminal case under the N.I. Act?
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Ans. Yes. |
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| Q.10 I have delivered goods vide a Invoice. I have no cheques with me. What remedies are available with me?
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Ans. Besides a suit for recovery of debts, one can also file a Police Complaint of cheating U/s 420 of IPC, if the goods are purchased by the customer and false assurance regarding payment is made. The Hon’ble Supreme Court has now settled the legal position that cheating is mainly done on money and commercial transactions.
The teeth of provisions of Section 138 of N.I. Act are very effective and sharp and the courts are always ready to give relief but all it needs the proper drafting of the complaint. |
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| (The answers to the above questions are based upon latest Judgments and Sections of N.I. Act.)
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