Cheque Bounce Case Lawyer in Kolkata

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Non-Payment of cheque amount is an offence under 138 of the Negotiable Instruments Act , 1881.Cheques are used in almost all transactions such as re-payment of loan, payment of salary, bills, fees, etc. A vast majority of cheques are processed and cleared by banks on daily basis. Cheques are issued for the reason of securing proof of payment. Nevertheless, cheques remain a reliable method of payment for many people. On the other hand, it is always advisable to issue crossed “Account Payee Only” cheques in order to avoid its misuse.
   A cheque is a negotiable instrument. Crossed and account payee cheques are not negotiable by any person other than the payee. The cheques have to be deposited into the payee's bank account.
   Legally, the author of the cheque is called ‘drawer’, the person in whose favour, the cheque is drawn is called ‘payee’, and the bank who is directed to pay the amount is known as ‘drawee’.
   However, cases of cheque bounce are common these days. Sometimes cheques bearing large amounts remain unpaid and are returned by the bank on which they are drawn.
   
IF A CHEQUE IS DISHONOURED ::
   
   When a cheque is dishonoured, the drawee bank immediately issues a ‘Cheque Return Memo’ to the banker of the payee mentioning the reason for non-payment. The payee’s banker then gives the dishonoured cheque and the memo to the payee. The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time. However, if the cheque issuer fails to make a payment, then the payee has the right to prosecute the drawer legally.
   The payee may legally sue the defaulter / drawer for dishonour of cheque only if the amount mentioned in the cheque is towards discharge of a debt or any other liability of the defaulter towards payee.
   If the cheque was issued as a gift, towards lending a loan or for unlawful purposes, then the drawer cannot be prosecuted in such cases.
   
   FINE POINTS: CONDITIONS FOR PROSECUTION : :
   
   
Legally, certain conditions have to be fulfilled in order to use the provisions of Section 138 of N.I.ACT 1881.
   The cheque should have been drawn by the drawer on an account maintained by him.
   The cheque should have been returned or dishonoured because of insufficient funds in the drawer's account.
   The cheque is issued towards discharge of a debt or legal liability.
   After receiving the notice, if the drawer doesn't make the payment within 15 days from the day of receiving the notice, then he commits an offence punishable under Section 138 of the Negotiable Instruments Act.
   
   
    Contact- K . GHOSH, Advocate
    Mobile: 91-7044002839
    E-mail: kolkatalawyer@gmail.com