CHEQUE BOUNCEREMEDIES

Mandatory Information:

• • Cheque details (number, date, amount, bank)
• • Date of presentation and return
• • Reason for dishonour
• • Underlying debt/liability details
• • Demand for payment within 15 days
• • Consequences of non-payment

Legal Requirements:

• • Clear and unambiguous language
• • Proper identification of parties
• • Complete address details
• • Date and place of notice
• • Signature of payee/authorized person
• • Legal basis for claim

Acceptable Methods:

• • Registered post with acknowledgment due
• • Speed post with delivery confirmation
• • Courier service with receipt
• • Personal service with acknowledgment
• • Email (if agreed upon)
• • Through advocate

Proof of Service:

• • Postal receipt and acknowledgment
• • Courier delivery receipt
• • Personal service acknowledgment
• • Email delivery confirmation
• • Advocate's certificate of service
• • Return receipt from post office

Jurisdiction & Court:

• • Magistrate court having jurisdiction
• • Place where cheque was presented
• • Place where cheque was returned
• • Place where payee resides/works
• • Metropolitan Magistrate/JMFC
• • Special courts (if designated)

Required Documents:

• • Original dishonoured cheque
• • Bank return memo
• • Legal notice and service proof
• • Underlying transaction documents
• • Affidavit of complainant
• • Court fee and process fee

Essential Allegations:

• • Details of underlying transaction
• • Cheque issuance circumstances
• • Presentation and dishonour details
• • Legal notice service and non-compliance
• • Fulfillment of all statutory requirements
• • Prayer for punishment and compensation

Legal Provisions:

• • Section 138 of NI Act
• • Section 142 (cognizance)
• • Section 147 (other offences)
• • Relevant sections of CrPC
• • Evidence Act provisions
• • Limitation Act provisions

Advantages:

• • Faster disposal (6-12 months)
• • Limited scope for defense
• • Immediate relief possible
• • Lower court fees
• • Simplified procedure
• • Interim relief available

Requirements:

• • Written contract or negotiable instrument
• • Clear and specific claim
• • No complex disputed facts
• • Proper documentation
• • Jurisdiction compliance
• • Limitation period adherence

When Applicable:

• • Complex factual disputes
• • Multiple causes of action
• • Substantial defenses raised
• • Cross-claims involved
• • Higher value claims
• • Detailed examination required

Relief Available:

• • Recovery of cheque amount
• • Interest and damages
• • Costs of litigation
• • Interim injunctions
• • Attachment of assets
• • Specific performance

Asset Attachment:

• • Bank account attachment
• • Salary/income attachment
• • Movable property seizure
• • Immovable property attachment
• • Business assets attachment
• • Third-party debt recovery

Recovery Methods:

• • Warrant of attachment
• • Garnishee proceedings
• • Receiver appointment
• • Property sale/auction
• • Arrest and detention
• • Compromise settlements

Criminal Court Compensation:

• • Up to twice the cheque amount
• • Interim compensation possible
• • Interest on delayed payment
• • Costs of prosecution
• • Execution through civil court
• • Recovery as arrears of land revenue

Civil Court Damages:

• • Principal amount recovery
• • Interest at agreed/legal rate
• • Damages for breach of contract
• • Costs of litigation
• • Penalty clauses (if applicable)
• • Consequential damages

Out-of-Court Settlement:

• • Direct negotiation with drawer
• • Lawyer-mediated discussions
• • Installment payment plans
• • Reduced amount settlements
• • Security for future payments
• • Mutual release agreements

Court-Approved Compromise:

• • Lok Adalat settlements
• • Mediation center agreements
• • Court-recorded compromises
• • Consent decrees
• • Compounding of offences
• • Withdrawal of complaints

Procedural Defects:

• • Improper legal notice
• • Limitation period expired
• • Lack of jurisdiction
• • Defective complaint
• • Improper service of process
• • Non-compliance with statutory requirements

Substantive Defenses:

• • No legally enforceable debt
• • Cheque not for discharge of liability
• • Payment already made
• • Cheque given as security
• • Fraud or misrepresentation
• • Conditional delivery of cheque

Valid Exceptions:

• • Stop payment instructions
• • Material alteration of cheque
• • Forged signature
• • Account closure before presentation
• • Death of drawer
• • Insolvency of drawer

Burden of Proof:

• • Presumption under Section 139
• • Drawer must prove defense
• • Standard of proof: preponderance
• • Documentary evidence required
• • Witness testimony
• • Expert evidence (if needed)

Interim Compensation:

• • Mandatory interim compensation
• • Minimum 20% of cheque amount
• • Payable within 60 days
• • Adjustable against final compensation
• • Failure to pay: additional punishment
• • Recovery as arrears of land revenue

Trial Procedures:

• • Expedited trial procedures
• • Day-to-day trial mandate
• • Six-month completion target
• • Limited adjournments
• • Electronic service of summons
• • Video conferencing provisions

Electronic Records:

• • Electronic cheques covered
• • Digital signatures validity
• • Electronic image acceptance
• • Truncated cheque provisions
• • Online dispute resolution
• • Digital evidence admissibility

Procedural Improvements:

• • Simplified complaint format
• • Reduced documentation requirements
• • Online filing facilities
• • Faster service of process
• • Electronic payment of fines
• • Digital case tracking