What is the time limit for 138 case?
What is the time limit for a 138 case?
Section 138 of the Negotiable Instruments Act, 1881 (NI Act) deals with the offence of bouncing of cheques. It states that whoever, having drawn a cheque for the discharge of any debt or other liability, fails to pay the amount of the cheque on demand made by or on behalf of the payee or holder in due course, within a period of three days from the date of such demand, shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with both.
The time limit for filing a 138 case is one month from the date of the cause of action. The cause of action arises when the payee or holder in due course of the cheque serves a notice on the drawer of the cheque demanding payment of the amount of the cheque, and the drawer fails to pay the amount within 15 days of the service of the notice.
For example, if a cheque is issued on 1st January 2023, and it is dishonoured on 2nd January 2023, the notice must be served on the drawer of the cheque by 17th January 2023. If the notice is served on 18th January 2023, the time limit for filing a 138 case will expire on 17th February 2023.
It is important to note that the time limit for filing a 138 case is a strict one, and any delay in filing the case may result in the dismissal of the case. Therefore, it is important to consult with a lawyer as soon as possible if you are considering filing a 138 case.
How to fight a 138 case?
If you are accused of bouncing a cheque, you may be able to fight the case by raising a number of defences. Some of the most common defences include:
- The cheque was not dishonoured. This is the most common defence, and it involves showing that the cheque was actually paid in full.
- The cheque was not presented for payment within a reasonable time. The NI Act states that a cheque must be presented for payment within a reasonable time. If the cheque is not presented for payment within a reasonable time, the drawer may be able to argue that they were no longer liable to pay the amount of the cheque.
- The cheque was not presented in the right manner. The NI Act also states that a cheque must be presented for payment in the right manner. If the cheque is not presented in the right manner, the drawer may be able to argue that they were no longer liable to pay the amount of the cheque.
If you are accused of bouncing a cheque, it is important to speak to a lawyer as soon as possible to discuss your legal options. A lawyer will be able to advise you on the best way to fight the case, and they will be able to represent you in court if necessary.
Recent judgements on 138 cases
There have been a number of recent judgements on 138 cases. In some of these cases, the courts have clarified the law on 138 cases, and in other cases, the courts have overturned convictions on technical grounds.
One of the most important recent judgements on 138 cases is the Supreme Court judgement in the case of MSR Leathers vs. Palaniappan and others (2013). In this case, the Supreme Court held that the accused cannot be convicted under Section 138 of the NI Act if they have already been acquitted in a criminal case for the same offence.
Another important recent judgement on 138 cases is the Supreme Court judgement in the case of Bhaskaran vs. Shankaran Vidhyabalan (1999). In this case, the Supreme Court held that the payee or holder in due course of a cheque can file a 138 case even if the cheque has been presented for payment several times within the period of its validity.
These are just a few of the recent judgements on 138 cases. If you are accused of bouncing a cheque, it is important to speak to a lawyer to discuss your legal options in light of these recent judgements.
I hope this post has been helpful. Please let me know if you have any other questions.
