Legal Question in Banking Law in India

Re: cheque Bonce

I have perused the question carefully. The question raised is in respect of bouncing of a cheque and conviction of one year there after.

The bouncing of a cheque is a offence under section 138 of the Negotiable Instrument Act( hereafter called "Act").But the cheque which has bounced ought to have been issued for discharge of a debt or liability. If the faher of querist, as stated by him, has paid the money back in 2003 than the Court shuold not have convicted him at all. Though tecnically money has to be returned with in the demand period of the notice given under section 138 of the 'Act' but no court would convict under section 138 if the money has actualy been paid , though it has actually been paid after the stipulated notice period.

In my view conviction should not stand, but all these circumstances of payment of money has to be brought on record of the Court. It has further to be bourght on record of the Court that what were the circumstances under which the paymnt was not made with in he demand period. It appears that either all this has not been brought on record of the Court or the absence of lawyer on the date of argument has lead to this. I am of the view that if the matter is handled properly even at the appelate stage the conviction of one year can be set aside. I hope this answers the question. Please let me know if any further clarification is required.

Rajiv Nanda. Advocate.

Re: cheque Bonce

you can appeal before the sessions court within 30 days of the order of conviction . your father is entitled to be released on bail on hearing the appeal if contract for which the check was issued was not legally enforcable the sessions court may accept the appeal and acquit your father .