Cheque dishonour case

you can file a case..i think there is no restriction ..but still as it a megre amount i would say go and contact the party..and ask him to pay in cash..

There is no Mimimum amount for filing suit under Section 138, the cheque may be of any amount. As righty mentioned in aforesaid reply it will not be feasible to file case for amount of Rs. 100.

Mr. Shivakumar, from the text of Section 138 of  The Negotiable Instrument Act 1881, we can infer that the amount of cheque is not an issue, so you can criminally prosecute that person, but as Vaishakh and Smriti rightly advised, it is not feasible to waste your time, money and energy in such petty matters. So, we advise you not to entangle yourself in a legal web, rather you can go for a conciliation. Even after this, if you can not recover this petty debt, then you should be willing to write it off. 

I have reproduced the text below for your kind reference. Please read the highlighted words for a quick reading :

“138. Dishonour of cheque for insufficiency, etc., of funds in the account.

Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid. either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice. to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless-

(a) the cheque has been, presented 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;

(b) the payee or the holder in due course. of the cheque as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Explanation.- For the purposes of this section," debt or other liability" means a legally enforceable debt or other liability.”

Regards,

Veeral Gandhi

Perfectly answered by our Learned Member Mr.  Veeral...

Veral ji great going... keep contributing and keep learning.....

The main points before challenging to keep into mind are as under:

1. The cheque was returned by the bank for insufficient fund only;

2. The cheque has been, presented 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;

3. A demand has been made for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid;

4. The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

The main points before challenging to keep into mind are as under:

1. The cheque was returned by the bank for insufficient fund only;

2. The cheque has been, presented 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;

3. A demand has been made for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid;

4. The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Thank you very much Ankurji for your encouraging words and adding more value to the discussion.

Regards,

Veeral Gandhi

Indeed it is my pleasures Veeral ji...

i think six months period changed to three months

Yes, Manoj you are correct. I remember that as per RBI circular no. DBOD.AML BC.No.47/14.01.001/2011-12 dated, November 4th, 2011, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument w.e.f April 1st, 2012

Friends, please find that circular attached with this reply.

Regards,

Veeral Gandhi

An article on dishonour of cheques

https://corporategenius.blogspot.in/2012/10/dishonour-of-cheque-negotiable-instruments-1881.html