Cheque bounce

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2016 SIR,
IF CHEQUE BOUNCE THAN HOW I CAN RAISED A CASE AGAINST THE PERSON WHO IS GIVE ME THE CHEQUE PLEASE HELP

THANKING YOU

Sathish M

Sathish M (Expert)
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05 April 2016
You need to hire the services of a good lawyer to fight the case. Just have a look at the below amendments which has taken place:

While complainants whose cheques have bounced will be happier, people who are issuing them also have to be more careful because in the absence of sufficient amount or diverse signature, they will have to go through the pain of travelling to another city repeatedly to fight their case.

The Negotiable Instruments (Amendment) Bill, 2015

The Negotiable Instruments (Amendment) Bill, 2015 was introduced in the Lok Sabha on May 6, 2015. The Bill seeks to amend the Negotiable Instruments Act, 1881. The Act defines promissory notes, bills of exchange, cheques and creates penalties for issues such as bouncing of cheques.

The Act specifies circumstances under which complaints for cheque bouncing can be filed. However, the Act does not specify the territorial jurisdiction of the courts where such a complaint is to be filed.

The Bill amends the Act to state that cases of bouncing of cheques can be filed only in a court in whose jurisdiction the bank branch of the payee (person who receives the cheque) lies.
If a complaint against a person issuing a cheque has been filed in the court with the appropriate jurisdiction, then all subsequent complaints against that person will be filed in the same court, irrespective of the relevant jurisdiction area.

If more than one case is filed against the same person before different courts, the case will be transferred to the court with the appropriate jurisdiction.

The Bills also amends the definition of ‘cheque in the electronic form’. Under the Act, it was defined as a cheque containing the exact mirror image of a paper cheque and generated in a secure system using a digital signature. The definition has been amended to mean a cheque drawn in electronic medium using any computer resource and which is signed in a secure system with a digital signature, or electronic system.

“The provisions of the Negotiable Instruments (Amendment) Act, 2015 shall be deemed to have come into force on the 15th day of June, 2015, the day on which the Negotiable Instruments (Amendment) Ordinance, 2015 was promulgated to further amend the Negotiable Instruments Act, 1881,” a finance ministry release here said.

The amendments to the Negotiable Instruments Act, 1881 are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 138 of the act.

The amendment provides that jurisdiction for filing of cheque dishonour cases will only be a court within whose local jurisdiction the bank branch of the payee where he delivers the cheque for payment is located.

Further, where a complaint has been filed against the drawer of a cheque in the court having jurisdiction under the new scheme of jurisdiction, all subsequent complaints arising out of section 138 against the same drawer shall be filed before the same court, irrespective of whether those cheques were presented for payment within the territorial jurisdiction of that court or not.

It has also been provided that if there are more than one prosecution cases against the same drawer of cheques before different courts, the court shall transfer the case to the court having jurisdiction.

According to the government, the clarity on jurisdictional issues for trying cheque bouncing cases would increase the credibility of the cheque as a financial instrument.

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