How to file complaint under section 138 Negotiable Instrument Act in Indore?
Complaint under section 138 Negotiable Instrument Act in Indore
The Negotiable Instruments Act, 1881 was originally drafted in 1866 by the Indian Law Commission and introduced in December, 1867. The main object of the Act was to legalize the system by which instruments contemplated by it could pass from hand to hand by negotiation like any other goods. Another purpose of the Act was to encourage the culture of use of cheques and enhancing the credibility of the instrument.
Section 138: An offence committed under Section 138 is a non-cognizable offence. Also, it is a bailable offence. The offence under this section will be completed with following 5 components:
1. Drawing of Cheque by the drawer for the discharge of debt or other liability
2. Presentation of Cheque within 6 months form the date on which it is drawn
3. Dishonour of cheque and return unpaid by the drawee bank
4. Statutory Notice within 30 days of receipt of information from the bank regarding the return of cheque as unpaid to the drawer demanding payment of cheque amount
5. Failure to make payment by the drawer within 15 days from the date of receipt of Notice; Punishment : Imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both.
Payee in due course is a competent person to file complaint. Complaint must be by corporal person capable of making physical appearance in court. In case of company and firm natural person should represent it. Complaint can be filed by Power of Attorney Holder or by your lawyer in Indore.
Cause of action arises when notice is served on the drawer and drawer fails to make payment of the amount of cheque within 15 days. Limitation to file complaint is one month from the date of cause of action. However, by Amendment Act of 2002 court is empowered to take cognizance of the offence even if complaint is filed beyond one month by condoning the delay if sufficient cause is shown.
Penalty:
Imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.
Advocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
