Cheque Bouncing
Bouncing of Cheque for insufficient funds involves criminal prosecution under Section 138 of Negotiable Instrument Act with penalty of recovery of Double the cheque amount or imprisonment for two years, porvided the demand notice is sent withing 30 days from date of bouncing cheque amount remains unpaid.
Process of filing Complaint
2.Filing of criminal complaint on non payment of cheque amount after notice
3 Alternativley recovery suit can also be filed along with criminal complaint
Interim Relief of payment of 20 % of Cheque Amount & Bail
Court may grant interim relief to the complaint directing the drawer to immediatley pay 20 % of the cheque amount pending the decision of the case and grant bail to the drawer
Place of Complaint
The complaint for cheque bouncing can be filed at the option of complainant either at place of dishonour of Cheque by complainant bank or at a place where the accused resides or carry on its business.