1. Pre-Filing Stage: Issuing a Legal Notice
- The complainant must issue a legal notice to the drawer of the dishonored cheque within 30 days from the date of return of the cheque by the bank.
- The notice demands payment of the cheque amount within 15 days of receipt.
2. Filing the Complaint
- If the drawer fails to make the payment within the stipulated 15 days, the complainant can file a criminal complaint in the appropriate court within 30 days thereafter.
- The complaint must include:
- The cheque and return memo (dishonor slip).
- Copy of the legal notice and proof of service.
- Bank statement showing insufficiency of funds, if applicable.
3. Examination of the Complainant
- After the complaint is filed, the magistrate examines the complainant on oath under Section 200 of the CrPC.
- The magistrate reviews the evidence, including documents and affidavit, to determine if there is a prima facie case.
4. Issuance of Summons
- If the magistrate is satisfied, summons is issued to the accused (drawer of the cheque) to appear in court.
- Summons can be served personally, by post, through a courier, or electronically.
5. Appearance of the Accused
- The accused appears in court, either in person or through an advocate, on the specified date.
- The court may grant bail to the accused, as the offense under Section 138 is bailable.
6. Plea of the Accused
- The accused is asked to plead guilty or not guilty.
- If the accused pleads guilty, the court may impose a fine and/or sentence.
- If the accused pleads not guilty, the case proceeds to trial.
7. Pre-Trial Stage
- The court may direct the parties to explore settlement options, such as compromise or mediation, under Section 143A of the NI Act.
- If no settlement is reached, the case proceeds to trial.
8. Trial Stage
a. Complainant’s Evidence
- The complainant presents evidence to support the case, including:
- Examination-in-chief through affidavit or oral deposition.
- Cross-examination by the accused’s advocate.
- Documentary evidence, such as the dishonored cheque, legal notice, postal receipt, and return memo, is submitted.
b. Accused’s Defense
- The accused presents their defense, which may include:
- Denial of issuance of the cheque.
- Claiming payment or settlement.
- Proving lack of legal liability.
- The accused may be examined under Section 313 of the CrPC to explain evidence against them.
9. Final Arguments
- Both parties present their arguments based on evidence and legal provisions.
- The complainant must prove that the cheque was issued for a legally enforceable debt and that it was dishonored due to insufficiency of funds or other valid reasons.
10. Judgment
- The court delivers a judgment:
- If the accused is found guilty, the court may impose a fine (up to twice the cheque amount) or a sentence of imprisonment (up to 2 years), or both.
- If acquitted, the accused is discharged.
11. Post-Judgment
- Appeal by the Accused: The accused may appeal the conviction to a higher court.
- Recovery of Fine/Compensation: The complainant can initiate recovery proceedings if compensation is awarded.
Additional Provisions:
- Interim Compensation (Section 143A): The court can direct the accused to pay up to 20% of the cheque amount during the pendency of the case.
- Summary Trial (Section 145): Cases under Section 138 are tried summarily for speedy disposal.
This procedural framework ensures efficient handling of cheque bounce cases while protecting the rights of both the complainant and the accused.
For expert legal assistance in cheque bounce cases, contact Advocate Ketan Palshikar Pune. Our experienced legal team is here to provide you with the guidance and representation you need to navigate the complexities of cheque bounce cases effectively.
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