Mastering Cheque Bounce Cases (Section 138) & BNS Implications
Detailed timeline for Section 138 NI Act cases. Understanding the interaction between NI Act and the new Bhartiya Nyaya Sanhita (BNS) for cheating/fraud ingredients.
Financial disputes involving dishonored cheques are governed primarily by the Negotiable Instruments Act, 1881 (NI Act). While the NI Act itself hasn't been replaced by the new criminal codes, the procedural aspects of the trial are now governed by the BNSS, and associated charges like cheating fall under the BNS (Bharatiya Nyaya Sanhita).
The Core Offense: Section 138 NI Act
Dishonor of a cheque for insufficiency of funds is a criminal offense punishable with up to 2 years imprisonment or twice the cheque amount as fine.
Crucial Timelines (Strictly Mandatory)
1. validity: Cheque is valid for 3 months.
2. Legal Notice: Must be sent within 30 days of the 'Cheque Return Memo' from the bank.
3. Waiting Period: You must give the accused 15 days to make the payment.
4. Filing Complaint: If unpaid, file the case before the Magistrate within 30 days after the 15-day notice period expires.
Parallel Charges under BNS (formerly IPC)
Often, a heavy transaction fraud involves not just a bounced cheque but intent to deceive from the beginning.
- Old Law: Section 420 IPC (Cheating).
- New Law: Section 318 of BNS (Cheating).
Including a charge under Sec 318 BNS can strengthen the case if you can prove fraudulent intention since the inception of the transaction.
Interim Compensation (Section 143A NI Act)
Courts are now aggressive in granting interim relief. The accused can be ordered to pay 20% of the cheque amount to the complainant immediately upon framing of charges, even before the trial concludes. This provision acts as a huge deterrent against delay tactics.
Jurisdiction (Where to File?)
The case must be filed in the court having jurisdiction over the branch of the bank where the PAYEE (Complainant) maintains the account. This means if you are in Nawada and deposited the cheque in your Nawada bank branch, you can file the case in Nawada Civil Court, even if the accused is in Delhi.
Defense Strategies
Accused persons often claim 'Security Cheque' or 'Lost Cheque'. Expert cross-examination is required to dismantle these defenses and prove the 'Legally Enforceable Debt'.
Civil Court, Nawada, Bihar