Ven Vish
Asked March 02, 2017

Procedure for dishonoured cheque

  • 2 Answers
  • 1252 Views

In case of a cheque being dishonoured for want of sufficient funds, what is the procedure for further action and within what period a case is to be filed and if so, in which court?

Answers 2

As per section 142 of the Negotiable Instruments Act, 1881 in case of a cheque being dishonoured a

complaint can be filed either by the payee or the holder of the cheques as the case maybe to the

Metropolitan Magistrate or Judicial Magistrate of first class. A complaint can only be filed in the

following cases when-

  •  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;

  • 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 thirty days of the receipt of information by him from the bank regarding

the return of the cheque as unpaid; and

  • 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.

Such complaint shall be filed within one month from the date when the cause of action arises that is

after the passing of 15 days of giving notice as mentioned above.

Agree Comment 0 Agrees over 3 years ago

Need to send legal demand notice within 15 days from date of retun memo

on failure of payment within stipulated period of 15 days of legal demand notice file a complainant before JMFC within 30 days

As per new amendment complaint to be filed as per jurisdiction of complaiants bank 

Agree Comment 0 Agrees over 3 years ago

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