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Cheque Bounce Lawyer Indore

New Laws for Cheque Bounce in Indore; India

New Laws for Cheque Bounce in Indore; India

While there haven’t been any new specific laws regarding cheque bounce in Indore or India recently, there have been some clarifications and rulings by the Supreme Court and other courts that have impacted the way cheque bounce cases are handled. Here’s a detailed breakdown:

Main Law:

  • Section 138 of the Negotiable Instruments Act (NI Act): This remains the primary law governing cheque bounce cases in India. It states that issuing a cheque that bounces due to insufficient funds is a criminal offense punishable by imprisonment for up to two years, fine of up to twice the cheque amount, or both.

Recent Clarifications and Rulings:

  • Place of Presentation: The Supreme Court has ruled that the cheque can be presented for encashment at any bank branch, not just the bank where the payee has an account. This makes it easier for payees to initiate legal action.
  • Notice Period: The mandatory notice period before filing a complaint under Section 138 has been reduced from 30 days to 15 days. This speeds up the legal process for payees.
  • Compounding of Offenses: Issuing multiple cheques that bounce can be considered separate offenses, leading to potentially harsher penalties.
  • Dishonor of Cheque as Sole Offense: The act of dishonoring the cheque itself is the primary offense, not the reason for dishonor (e.g., insufficient funds, account closed). This simplifies proving the case.
  • Focus on Intent: While intent to defraud is not a mandatory element for prosecution, courts are increasingly considering it when determining the severity of punishment.

Additional Points:

  • The Madhya Pradesh High Court has also issued guidelines for speedy disposal of cheque bounce cases.
  • The government has launched initiatives to promote digital payments and reduce reliance on cheques, potentially impacting cheque bounce cases in the long run.

Important Note:

This information is for general understanding only and does not constitute legal advice. If you have a specific cheque bounce case in Indore, it’s highly recommended to consult a qualified lawyer for accurate guidance and representation.

I hope this detailed explanation clarifies the current legal landscape regarding cheque bounce in Indore and India.


Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304


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