{"id":24676,"date":"2021-01-22T12:05:52","date_gmt":"2021-01-22T06:35:52","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24676"},"modified":"2021-01-22T12:06:16","modified_gmt":"2021-01-22T06:36:16","slug":"dishonoured-cheque-qualifies-to-be-a-criminal-offence","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/","title":{"rendered":"Is a Dishonoured Cheque Qualifies to be a Criminal Offence?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">As per the section 138 of N.I ACT, 1881 shows\ncriminal effect in the event of dishonour of cheque. Police have the right to\narrest the defaulter in the dishonoured cheque case if the payee made complaint\nu\/s 417 and 420 of IPC. This provision ensures that unscrupulous people do not\nfool innocent people in terms of payment and do not flee from the country. The\narrest may be to confirm the presence of the accused in a court of law. <\/p>\n\n\n\n<p>There is a sigh of relief for you because if\nyou assure your presence in court then you can be out on bail. The offense\ncommitted under section 138 of N.I Act is a non-cognizable offense (dishonoured\ncheque is an issue in which police officer cannot arrest an accused without an\narrest warrant). <\/p>\n\n\n\n<p>The dishonoured cheque cases are common these days. Sometimes large amounts of carrying cheques remain unpaid and are returned by the bank to which they are attracted.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#When_a_Cheque_is_Dishonoured_or_Bounced\" >When a Cheque is Dishonoured or Bounced?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#Dishonoured_Cheque_is_a_Criminal_offence\" >Dishonoured\nCheque is a Criminal offence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#Can_a_Police_Complaint_be_Investigated_in_Dishonoured_Cheque_Case\" >Can a Police\nComplaint be Investigated in Dishonoured Cheque Case?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#Filing_Complaint_Procedure_under_a_Dishonoured_Cheque_Case_in_India\" >Filing\nComplaint Procedure under a Dishonoured Cheque Case in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#Rights_of_Drawer_under_the_Case_of_Dishonoured_Cheque\" >Rights of\nDrawer under the Case of Dishonoured Cheque<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/dishonoured-cheque-qualifies-to-be-a-criminal-offence\/#Concluding_Remarks\" >Concluding\nRemarks<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_a_Cheque_is_Dishonoured_or_Bounced\"><\/span>When a Cheque is Dishonoured or Bounced?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"985\" height=\"320\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/When-a-Cheque-is-Dishonoured-or-Bounced.png\" alt=\"Cheque is Dishonoured or Bounced\" class=\"wp-image-24683\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/When-a-Cheque-is-Dishonoured-or-Bounced.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/When-a-Cheque-is-Dishonoured-or-Bounced-300x97.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/When-a-Cheque-is-Dishonoured-or-Bounced-768x250.png 768w\" sizes=\"(max-width: 985px) 100vw, 985px\" \/><\/figure><\/div>\n\n\n\n<ul><li>When the cheque bounced then the drawee bank issues \u2018Cheque Return Memo\u2019 to the banker of the payee mentioning the reason for non-payment. <\/li><li>The payee\u2019s banker then provides the dishonoured cheque and the cheque return memo to the payee. <\/li><li>The payee can represent the cheque within three months of the date on it, if he believes it will be cleared in the second time. <\/li><li>In case the drawer fails to pay, then the payee has the right to initiate legal proceedings against the drawer.<\/li><li>The payee has to send <a href=\"https:\/\/corpbiz.io\/legal-notice\"><strong>legal notice<\/strong><\/a> within the 30 days of \u2018Cheque Return Memo\u2019 date.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dishonoured_Cheque_is_a_Criminal_offence\"><\/span>Dishonoured\nCheque is a Criminal offence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Although it is one of the most common financial offenses in India, under Section 138 of the <em><strong>Negotiable Instruments Act, 1881<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Negotiable_Instruments_Act,_1881\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, it is a non-cognizable offense.<\/li><li>Dishonoured cheque cases are punishable with imprisonment for a period of time that may be extended to two years, or a fine which may be double the amount of the cheque, or both. <\/li><li>The payee can file a civil or criminal complaint against defaulter to recover his amount.<\/li><li>A cheque is consider to be dishonoured or bounced when it is submitted to a bank but the cheque returned unpaid\u00a0 because of either insufficient funds in the drawer account or mismatched signature or any\u00a0 other reason.<\/li><li>It is a non-cognizable offence u\/s 138 of N.I Act and a non bailable warrant can be issued on immediate basis against defaulter u\/s 417 &amp; 420 of the IPC, 1860. <\/li><li>If there is more than one cheque that has dishonoured or bounced, the aggrieved can file separate suits against each dishonoured cheque.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/\">How to Send a Legal Notice for Cheque Bounce?<\/a><\/mark><\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_Police_Complaint_be_Investigated_in_Dishonoured_Cheque_Case\"><\/span>Can a Police\nComplaint be Investigated in Dishonoured Cheque Case? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, payee can register a police complaint\nagainst the drawer in dishonoured cheque case. Following are the condition requires\nmaking a police complaint in dishonoured cheque cases, which are given below:-<\/p>\n\n\n\n<ul><li>The complainant\nhas to prove that there was a criminal intention of drawer at the time of\nissuance of cheque.<\/li><li>The\ncomplainant has to prove the Mens rea.<\/li><li>If the\ndrawer knows that he has insufficient funds in his account but to escape from\nhis liability at that time he issues the cheque.<\/li><li>If the\ndrawer is frequent defaulter of cheque bounce<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Filing_Complaint_Procedure_under_a_Dishonoured_Cheque_Case_in_India\"><\/span>Filing\nComplaint Procedure under a Dishonoured Cheque Case in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>If the\ndrawer pays payment of the cheque amount within fifteen days from the date of\nreceiving of the notice, in that condition cheque bounce will not be considered\nas an offence.<\/li><li>If the\ndrawer fails to aforesaid condition then payee may proceed to lodge a complaint\nin the court of the first class magistrate within one month from the date of\nexpiry of 30 days prescribed in the legal notice.<\/li><li>Once the\ncomplaint has been registered against the drawer, the court proceedings can be start\nby the court.<\/li><li>The\nprocedure of filing complaint and prosecuting the drawer in a court of\nmagistrate involves certain finer points like cause of action, preparation of\nlegal notice and complaint in accordance with legal requirements, modes of\nsending the written legal notice, service of summons and non-bailable warrants,\nconducting the criminal case etc.&nbsp; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rights_of_Drawer_under_the_Case_of_Dishonoured_Cheque\"><\/span>Rights of\nDrawer under the Case of Dishonoured Cheque <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\ndefaulter can take anticipatory bail from the District Court or High Court if\nthe payee file a complaint against the drawer and the same was lodged as a\ncrime in the concerned police station. <\/li><li>The drawer\ncan go to the police station when the police authorities call him and answer\ntheir queries and after enquiry.<\/li><li>If any crime\nis lodged and take defaulter into custody, he can get bail from the concerned first-class\nmagistrate before whom he was presented. <\/li><li>Police\nAuthorities will not entertain any case that fall u\/s 138 of N.I Act unless\n&amp; until payee does not prove the Mens rea before the police.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remarks\"><\/span>Concluding\nRemarks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Considering the number of cases pending in our\nlegal system, if you attend each hearing and provide sufficient evidence that\nindicates that you did not intend to defraud the person who filed the case\nagainst you , It can be disposed of in about a 1.5 years. <\/p>\n\n\n\n<p>But if you are inconsistent and if the magistrate has issued a summons, it may take 3-5 years to settle the case. If you decide not to abscond from the city or leave the city without a hearing, the case against you will be placed in a pending position. Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert to know more about dishonoured cheque qualifies to be a criminal offence or not.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/legal-rights-available-for-payee-in-cheque-bounce-cases\/\">What is the Legal Rights Available for Payee in Cheque Bounce Cases?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per the section 138 of N.I ACT, 1881 shows criminal effect in the event of dishonour of cheque. Police have the right to arrest the defaulter in the dishonoured cheque case if the payee made complaint u\/s 417 and 420 of IPC. This provision ensures that unscrupulous people do not fool innocent people in [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24690,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[342],"tags":[1457],"acf":{"service_id":"283"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":6811,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24676"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24676"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24676\/revisions"}],"predecessor-version":[{"id":24698,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24676\/revisions\/24698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24690"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}