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what is Complaint Against Cheque Dishonour?
Complaint Against Cheque Dishonour – Cheques are used in almost all transactions such as re-payment of loan, payment of salary, bills, fees, etc. A vast majority of cheques are processed and cleared by banks on daily basis. Cheques are issued for the reason of securing proof of payment. Nevertheless, cheques remain a reliable method of payment for many people. On the other hand, it is always advisable to issue crossed “Account Payee Only†cheques in order to avoid its misuse.
When a cheque is dishonoured, the drawee bank immediately issues a Cheque Return Memo’ to the banker of the payee mentioning the reason for non-payment. The payee’s banker then gives the dishonoured cheque and the memo to the payee. The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time. However, if the cheque issuer fails to make a payment, then the payee has the right to prosecute the drawer legally. The payee may legally sue the defaulter/drawer for dishonour of cheque only if the amount mentioned in the cheque is towards the discharge of a debt or any other liability of the defaulter towards the payee. If the cheque was issued as a gift, towards lending a loan or for unlawful purposes, then the drawer cannot be prosecuted in such cases.
Need For Complaint Against Cheque Dishonour Draft Format
If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrates court within a month of the expiry of the notice period.
If the bank refuses to pay the amount mentioned on the cheque, the cheque is dishonoured. The payee must inform the payer of the dishonoured cheque and ask them to inquire about its reason. If the payer believes the cheque will be honoured a second time, they can resubmit it within three months after the date on it. However, if the cheque bounces again, the payer can face legal action.
FAQ’s for Complaints Against Cheque Dishonour
Q1. What is the effect of dishonour of cheque?
Ans – The Negotiable Instrument Act, 1881 is applicable for the cases related to the dishonour of cheques. In accordance with section 138 of this act, dishonour of cheque is a criminal offence and is punishable with monetary penalty or imprisonment up to 2 years or both.
Q2. How do you treat dishonoured cheque?
Ans – When the cheque is subsequently dishonoured, it should be recorded as a “Payment” but should be recorded in the Receipts Book under the Column “Dishonour of Cheque”. 3. The amount covered by the Cheque should be deducted and the daily balance should be arrived at.
Q3. What is legal notice for Dishonour of Cheque?
Ans – When the cheque bounces due to insufficient funds and is returned by the bank, the payee should send a legal notice to the drawer of the cheque asking to make the payment. Cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 in India
Q4. What is a reasonable time for giving notice of Dishonour?
Ans – If the holder and the party to whom notice of dishonour is given carry on business or live (as the case may be) in different places, such notice is given within a reasonable time if it is despatched by the next post or on the day next after the day of dishonour.
COMPLAINT AGAINST CHEQUE DISHONOUR SAMPLE FORMAT
AT
IN THE COURT OF CHIEF JUDICIAL MAGISTRATE AT …………………………
Cr. Complaint No. _______of ________.
…………………………………………………Complainant.
Versus
…………………………………………………………….Accused/Respdt.
Complaint Under section 138 and 142 of the Negotiable Instrument Act, 1881.
Respectfully ………………..:-
1. That the accused issued one cheque bearing No. _______________________ dated______________ for a sum of Rs. _________drawn on ___________________________ for a lawful valuable consideration in discharge of his liability in favour of the complainant.
2. That the complainant presented the said cheque lastly on _______________ which was returned unpaid by drawee Bank vide returning Memo dated ________________ for the reasons `Insufficient Funds`. The said cheque was presented within its validity period and stood dishonoured on presentation.
3. That the complainant got a notice issued through his counsel dated ___________ under registered AD cover and UPC to the accused demanding the amount of the dishonouredcheques within 15 days of the receipt thereof which was duly served upon him on(Date) ____________. It is submitted that the Registered cover containing the notice was received back as unclaimed as the accused has deliberately avoided the service of the notice, however the notice sent through UPC stood served upon the accused on (Date)___________________, the copy of notice with postal receipt/ UPC and envelop containing notice is filed with the complaint.
4. That the accused person has not cared to make the payment of the amount of dishonouredcheques to the complainant within 15 days as required under the law as demanded in the notice.
5. That the cause of action for filing the complaint arose to the complainant with in the jurisdiction of this learned court when the accused failed to make the payment of the cheques in dispute to the complainant with in 15 days of the receipt of notice.
6. That the accused is guilty of an offence under section 138 of the Negotiable Instrument Act, 1881 and is liable to be punished under section 142 of the said Act.
It is, therefore, prayed that the accused person be proceeded against and punished in accordance with law as envisaged under section 142 of the Negotiable Instrument Act in accordance with law. Complainant
Through Advocates
Place: _________
Dated: _________
List of Documents attached:-
1. Original dishonoured cheque No. ____________ dated _____________ for Rs.____ drawn on _________________________________________
2. Original returning Memos of the drawee Bank dated ________
3. copy of Notice dated _____________.
4. Postal and UPC receipt dated _________ and envelop containing notice.
List Witnesses:-
1. Complainant.
2. Concerned officers of the ___________________ with the records pertaining to the ________ of the accused regarding dishonoured cheque No.______________ for Rs.____________ _______.
AFFIDAVIT
I (Name)___________________________,
S/o Shri ____________________________,
aged __________________ years,
R/o_______________________________________________________________________ do hereby solemnly affirm and declare on oath that the contents of the accompanied application from para 1 to 6 are true and correct to my personal knowledge and belief and that nothing false is stated therein and also nothing material is concealed there from
I further declare and verify on oath that the contents of this affidavit are true and correct and nothing material is concealed there from. Verified at _______ on this _______ day of_________.
DEPONENT.
