Cheque bounce does not result in instant attachment of accused person’s house, land, car or assets. First, a Section 138 complaint concludes liability in criminal matters relating to cheque dishonour. Attachment of property may follow at another stage for a lawful purpose. This slight distinction is important. Someone who has won a cheque bounce case against them may not have been paid. Someone accused of cheque bounce may have gotten a notice about attachment and think the sale of all their property is about to happen. Each situation demands reviewing the court order as issued. According to section 18 of Bharatiya Nagarik Suraksha Sanhita, 2023 (replacing Section 128 of CrPC), if an offender is sentenced to pay a fine and defaults in payment, the court shall issue a warrant for the amount due on him. The warrant shall be for the recovery of the amount due, by attachment and sale of the offender’s movable property. The court may also direct the Collector to recover the amount due from the offender as arrears of land revenue from the movable property of the offender, or from his immovable property, or from both. Property can be attached in a cheque bounce case. However, it isn’t an immediate consequence of initiating a complaint under Section 138. If any order, conviction, compensation or direction or issue of execution has already been passed/order’d, BK Singh Advocate can review the judgment/order, payment direction & stage of recovery before suggesting a course of action to either side. Cheque bounce victims wrongly believe that upon winning the case, the judgement will be like magic converted to cash. This isn’t always the case. The judgement of the Court only declares the legal position. If the convicted doesn’t pay the amount as directed by the Court then further execution proceedings may have to be initiated. Under BNSS Section 461, enforcement of an unpaid fine includes levy by way of attachment and sale of offender’s movable property or recovery by the Collector from the offender’s movable or immovable property. The worry for the complainant is recovery of the money. And from the perspective of the accused, is the attachment order judiciously linked to the extant fine / compensation / some other procedural provision. Allow BK Singh Advocate to scan through the related Section 138 proceeding before the property gets attached as a matter of course. Readers with an extant final order can also read this blog: Execution Recovery After cheque bounce Order. Dishonour of cheque does not operate to attach instantly every asset of the drawer. Issues of dishonour, valid enforceable liability, receipt of statutory notice, failure to make payment and consequent filing of complaint kick start Section 138 proceedings. Provisions dealing with trial, interim compensation, compounding and compensation at the appeal stage are separately dealt with under the Negotiable Instruments Act. A litigant at the threshold of this legal process can use the site's guide on filing a Section 138 cheque complaint . Recovery of property generally requires a separate underlying cause. The cause could be an order of unrecovered fine or compensation on judgment, an executable recovery order or, in another procedural context, attachment in the case of a runaway accused. Advocate BK Singh can review if the order being acted on truly permits the intended attachment. Attachment proceedings should never be evaluated based on a WhatsApp message or spoken statement saying that the "property will get attached". May include: If negotiating a settlement before enforcement actions become adversarial, See also Settlement Cheque Bounce Cases page for the site. BK Singh Advocate can review your entire file. Title, stage of the case and the language of the operative order can change matters legally. Legal review is helpful when judgment has already been awarded, compensation has not been paid, warrant for recovery has been issued by the Court. The defendant objects to his title on attached property or a third party has rights on the attached property. Attachment can also be challenged on the urgent ground of non-summary where it is attached in relation to failure to appear. Non-appearance is dealt with sternly with progressive coercive judicial processes. You can read about Importance of appearance in court in 138 summons section on this site. BK Singh Advocate will be able to tell you if your matter is related to recovery post judgment, proclamation case, payment on appeal or some other process. Reviewing your documents sooner can help you avoid making the mistake of criminal execution and a parallel civil remedy for recovery. Cheque Bounce Lawyer deals with section 138 issues like complaint, summons, defence, compromise, appeal and post-order recovery related matters. Depending on the stage of proceedings, BK Singh Advocate will review the court order, pending amount, payment details, title documents and existing recovery process. If you are a complainant, BK Singh Advocate will review if the final order is in an executionable stage of recovery. If you are an accused or a property owner affected by any attachment, we will review if the property taken, amount and process align with the actual order passed by the court. No attachment or recovery can be guaranteed. BK Singh Advocate will have to evaluate the facts, title record, order passed and stage of procedure in each case. No. A complaint under Section 138 cannot by itself automatically fasten an attachment over the accused person’s house or other property. Independent grounds and due Court process are necessary before attachment of property can be effected. Issues of property recovery can arise where a fine or other amount ordered by the Court to be recovered has not been paid. Section 461 of BNSS would apply for specified modes of recovery. BK Singh Advocate will need to review judgment and recovery warrant to find out the real position. Yes. Section 461 specifically authorises the court to issue warrant for levy of an unpaid fine by attachment and sale of movable property of offender. Yes. Section 461 also allows the court to authorize the Collector to recover the amount as arrears of land revenue from the movable or immovable property or both of such person. Section 85 separately addresses attachment of property belonging to person who is absconding. BK Singh Advocate will have to review proclamation, warrant and attachment orders in such case because it is separate from attachment for purpose of recovering cheque compensation amount. No. Section 143A deals with power to direct interim compensation in cheque bounce proceedings. Cannot lose sight of the fact that it does not automatically attach all assets of the accused. Would depend on the orders passed during appeal and if recovery has been stayed or regulated in some other manner. Section 148 separately allows appellate court to direct payment of amounts pending appeal against conviction. Documents proving ownership would become very important if a third party asserts his claim over attached property. BK Singh Advocate can review title documents, attachment warrant and the exact interest claimed before the Court. No. Judgement in favor gives rise to liability but the actual recovery would depend on payment instructions, available assets and enforcement process allowed by law. Possibly yes, depending on the stage of proceedings and orders already passed by the Court. Cheque bounce is an offence compoundable under Section 147 of Negotiable Instruments Act. BK Singh Advocate will have to see how a settlement would affect the ongoing recovery proceedings. Property can only be attached in a cheque bounce case when allowed under law and it cannot be attached just because a cheque got dishonoured and/or complaint under Section 138 got initiated. Property can be attached after conviction for recovery of unpaid fine/recoverable amount awarded by the Court under BNSS in respect of movable property and attachment/sale in respect of movable property or attachment/recovery via Collector in respect of movable or immovable property. There is another mechanism for attachment where the accused is absconding. So one needs to read the judgment/sentence/order for compensation, appeal status if any along with record of ownership and attachment. Advocate BK Singh can review such case pertaining to complainant, accused and owner of the property facing cheque bounce case & attachment proceedings on a case by case basis.Why Does Property Attachment Matter in Cheque Bounce Cases?
Quick Facts
Can Property Be Attached Simply Because a Cheque Bounced?
What Documents Should Be Checked Before Property Attachment?
When Should You Consult a Cheque Bounce Lawyer?
How Can Cheque Bounce Lawyer Help?
Frequently Asked Questions
1. Can my house be attached immediately after cheque bounce complaint is filed?
2. Can property be attached after conviction in cheque bounce case?
3. Can movable property be sold to recover unpaid fine?
4. What about attachment of immovable property?
5. What if the accused absconded? Can his property be attached?
6. Does Section 143A attach property automatically?
7. Can attachment of property be done during appeal?
8. What happens if the property partly belongs to somebody else?
9. Is winning a cheque bounce case sufficient to recover money?
10. Can parties still settle after a dispute on recovery of property has begun?
Final Thoughts
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