The offence is said to be committed under Section 138 of the NI Act, only when he fails to pay the debt within 15 days and such person shall be punishable with imprisonment for a term which may be extended to two years, or with a fine which may extend to twice the amount of the cheque, or with both.
What is the time limit for cheque bounce case?
Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint against cheque bounce before the Magistrate within 30 days of the expiry of 15 days of the issuance of the cheque bounce notice.
What are the conditions that must be fulfilled in order to initiate proceeding under s 138 of the Negotiable Instruments Act 1881?
To constitute an offence under Section 138 of the Act, the following ingredients are required to be fulfilled:
- A person must have drawn a cheque on a bank account maintained by him.
- The cheque should have been issued for the discharge, in whole or in part, of any debt or other liability;
