N i act

Clearly an offence of  dishonour of cheque on  account of insufficiency of funds is made out.3 conditions must be met to  reduce the liability of drawyer of cheque. Payee or the holder in due course has issued notice in writing demanding payment of   the amount  of the cheque after coming to know of its return(cheque's return)within 30 days  of  information from the bank of its bounce or return   and  THE DRAWYER FAILS TO  PAY THE CHEQUE AMOUNT WITHIN A PERIOD OF 15 DAYS FAILS TO PAY SUCH AMOUNT an offence under section 138 is clearly made out. . As per section 138 clause (a) the cheque must be presented within  6 monts of its drawal or its validity whichever is earlier.Once the offfence under section 138  of N.I Act is  made out the drawyer of bounced  cheque would be punishable with   2 years imprisonment  or fine of  double the amount of  bounced cheque. or both.If you appreciate this answer please click the thank you button on this forum.

According to section 138 of Negotialbe Instruments Act:

If the drawer of the cheque knows that it can not be used for more than Rs.5 lakhs and still he has issued to the payee, then it becomes a cheating.(In addition to Sec.138).

Even he says that he is not aware of that, even after such return he should have issued cheques as required to correct the mistake if any committed.

If the drawer fails to do any of these two things, he has knowingly cheated the payee.

Yes. Section 138 NI is made out.

Samarpan

Mr Prasad has given the correcvt logic. Cheque bounce cases are based on the concept of strict liability and hence would only come into question if the payer had iminent knowledge of the fact that the same would be bounced upon presentation.

Augustine Chatterjee

Advocate & Solicitor at Law

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Thanks to all. Please provide a citation of Apex Court or any High Court.

Thanks to all. Please provide a citation of Apex Court or any High Court.