Cheque Bounce Case After 30 Days: Understanding the Time Limits
In India, a cheque bounce case is a legal action taken against the issuer of a cheque that is dishonored by the bank due to insufficient funds. Moreover, it’s a common method for recovering debts; however, strict timelines govern filing such cases. Consequently, this article explores the consequences of filing a cheque bounce case after 30 days.
Time Limits for Cheque Bounce Cases
The Negotiable Instruments Act, 1881 (NI Act) dictates the legal framework for cheque bounce cases. Here’s a breakdown of the crucial time limits:
- 30 Days to Issue Legal Notice: Upon receiving a cheque return memo from your bank, you have 30 days to serve a legal notice to the cheque issuer (drawer). This notice demands payment of the cheque amount within a stipulated timeframe.
- 15 Days to Respond to Legal Notice: The cheque issuer has 15 days from receiving the legal notice to arrange payment or contest the claim.
What Happens After 45 Days (30 Days + 15 Days)?
If the cheque issuer fails to respond to the legal notice within 15 days or doesn’t clear the dues, you can file a complaint under Section 138 of the NI Act. However, this complaint must be filed within a specific timeframe:
- Generally 1 Month After Expiry of Notice Period: In most cases, you have one month (typically 30 days) from the expiry of the 15-day response period to file the complaint. Therefore, this translates to roughly 45 days after receiving such memo.
Latest Judgement on Cheque Bounce Case Filing
Rajesh Kumar v. State of Haryana (2023) :
The Supreme Court clarified that the 30-day period for filing a complaint starts from the date of receiving the cheque bounce memo, not from the date of issuance of the cheque.
This ruling emphasizes the importance of timely action by the complainant.
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