A cheque is said to be dishonoured or bounced when it is presented for payment to a bank but it is not paid by the bank because of some reason. It is necessary to send a legal notice within 30 days from the date of return (dishonour) of cheque asking the noticee to pay the amount within 15 days. On expiry of fifteen days from the service of notice, you have to file a complaint before the concerned magistrate within 1 month of the said expiry.
The Complaint under Section 138 of the NI Act should be filed in the jurisdictional Magistrate Court within whose territorial jurisdiction the Bank/branch in which the payee/holder hold an account is located.
Cheque bounce is a criminal offence punishable with imprisonment for a term upto two years or with a fine twice the amount of the cheque or both.
The following documents will be required :- 1. Dishonoured Cheque 2. Dishonour Memo given by the Bank with the Bank stamp
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