Legal Question in Criminal Law in India

Is chq bounce u/138 applicable ?

Need your valuable feed back on applicability of section 138 on NI for following case :

I have A/c in ABC bank and other party has in XYZ

1) Party gave me chq of XYZ with Dt D1

2) We deposited in our bank ABC on D5 (D1 + 5 Days)

3) It got bounced with reason A/c closed on D8 (D1 + 8 Days)

....3 month passed..we didn't served any notice to party...

4) We redeposited same chq (in drop box of ABC) on date D98 (D1 + 98 Days)

5) My ABC bank returned the same chq to me w/o processing and w/o sending to bank XYZ for clearing

(as it has A/c closed stamp on it)

6) Now we have served notice to party stating that chq got bounced on D93 with A/c closed.

7) Party has replied that their A/c is active and operative (We assume that Party's A/c was just closed for few days between D2 and D10 due to some reason and latter on they got it reopened)

Can I file 138 based on latest deposition of D10, even though my bank ABC has not sent the chq to bank XYZ for clearing ? Party has stmt/letter from XYZ bank that no chq has been bounced between D90 and D100.

Can we ask question to our bank for not processing for clearing ?

Can Bank ABC put a stamp of ''A/c closed'' when chq get bounced due to A/c close ? Is it std practise of bank?


Asked on 7/05/07, 3:39 am

3 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Is chq bounce u/138 applicable ?

You may not be able to prosecute the drawer of cheque u/s.138 NI due to statutory time limits prescribed. You may consider filing a civil suit against the drawer of cheque as also proceeding against your Banker.

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Answered on 7/05/07, 6:58 am

Re: Is chq bounce u/138 applicable ?

you can not file complaint u/s.138 N.I.Act as you had already served the notice.nevertheless,your case is time barred by limitation prescribed for 138 N.I.Act.

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Answered on 7/05/07, 12:51 pm
G. M. Gupta gmguptaandassociates

Re: Is chq bounce u/138 applicable ?

sorry but ur dates pattern has not helped. you should have given dates to have perfect details. since it is a technical case. you can be saved even after limitation expires and can be demolished even before limitation. so it is important that i get exact dates before i advice anything to u

however let me explain basic funds

1. you can deposit the cheque as many times u like with in its validity period of 6 MONTHS.

2. after bouncing you need to send notice within one month giving 15 days time for payment and then u can file case within 1 month after expiry of 15 days of receipt of notice.

3. you can deposit the cheque for payment till the filing of the case.

4. mistakes in notice can be rectified

For further advice you please contact me personally alongwith documents. Consultation charges will apply.

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Answered on 7/05/07, 1:55 pm


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