When you write a cheque and don't have sufficient balance in your bank account it can get you into big problems. You can lose your job or business or have to spend money on medical needs or your salary doesn't come on time. In these situations you will not have enough balance in your account.
What if you cant honour your cheque because you dont have sufficient balance in your bank account. You would still be committing an offence under section 138 of Negotiable Instrument act 1881.
Lets assume that you run a business in Delhi and you issued a cheque to one of your supplier. But you failed to collect payment from your customers. Because of which you didnt have sufficient funds to pay the cheque. The cheque got returned due to insufficient funds in your account. Your supplier wants his money and you have no idea where to get the money from.
These are few examples where you as a drawer will be in a difficult position and will have to pay the money to your payee. Fear of getting summons in court, getting registered a FIR and paying off money will ruin your business relationship.
However there can be many situations where cheque bounce case can be settled without a trial. You can negotiate with your payee to pay within a fixed duration or you can find some other solution.
If you want to know more about Cheque Bounce Settlement and 138 case. Please contact Advocate BK Singh on Cheque Bounce Lawyer.
How much money should you pay? Well it depends on how much you can pay.
With help from a lawyer you can try to reach a settlement between both the parties. This will help your complainant get his money and you can also pay your dues.
If you are in a financial crisis and have received a demand notice or have a cheque bounce case filed against you. Please contact Advocate BK Singh.
In this article we will be discussing about what to do when you dont have sufficient funds to pay the cheque. What kind of settlement you can provide to your complainant. And when you should hire a lawyer.
Many Borrower's Employees Trader & Business houses face the problem of shortage of funds in India. There are many places where Commercial Transactions are done using Post Dated Cheque. Some of them being Delhi Noida Ghaziabad Gurugram Faridabad Mumbai Pune Bangalore and Hyderabad.
When one does not meet the expected income he may fall short on his dues to different Creditors, Vendors Landlords or even Bank.
If you file for a Cheque Bounce you only increase these problems. There will be Expenses due to Litigation Court Appearance and can even jail you.
For the Complainer it can also be devastating if they do not receive their money on time. As a Vendor you may not be able to pay your employees or buy inventory.
It is always better to come to an amicable agreement with the defaulter rather than having an improper settlement.
Contact Advocate BK Singh to know if your Settlement Amount will meet your need.
Talk to your Lawyer as soon as possible to prevent this situation.
Cheque may bounce if you face financial crisis. However that does not imply that there will be no liability.
Some questions which needs to be asked when dealing with section 138. Why was the cheque given for? Was any debt due to you according to law. If the cheque was dishonored did you follow the steps mentioned in law.
Yes you can be charged if you faced a financial crisis and all above points are satisfied.
Lets say you issued a cheque for some amount which you borrowed. And later on you lost your job. So you still owe the amount which you had taken as loan. It will not be nullified because you are facing financial crisis.
This also applies if you have given cheque for a bill. If your business is not making money. That does not mean you have no liability.
It's difficult to make out the difference when you don't have money to pay or the debt itself is wrong.
According to section 139 there will be presumption in favour of holder of the cheque. But you can dispute the debt if you have enough evidence to prove your cause.
Talk to an advocate like BK Singh if you need any further clarification.
To know about all options you have you can read
cheque bounce proceedings versus civil recovery
.
When the cheque is dishonoured for discharge of legally enforceable debt or liability section 138 will apply subject to fulfilling the conditions.
Simply by the dishonour of cheque it does not constitute all the ingredients of an offence.
After you are informed by your bank about dishonour of cheque. You have to serve notice to the drawer within a period of 30 days. And he has to pay you within a period of 15 days of receiving such notice.
If he doesn't comply you can file a complaint within a period of 1 month from the date of cause of action. Subject to condoning of delay if any.
This will also apply while you are in discussion with him for settlement of dues.
Section 147 provides for compounding of offence under section 138 of NI Act.
You can compromise an offence of cheating i.e cheque bounce by settling the matter as per law and the complainant agrees to it.
Even after initiating the matter before the court you can compromise in few circumstances. It can be in the appellate stage too.
The Hon'ble Supreme Court has observed that if there is a compromise then the case under section 138 can be closed.
Contact BK Singh Advocate to know more about this.
If a person promises you to pay you privately it does not close your case.
Solution which is feasible to the creditor and can be paid by drawer.
Options available if both parties want to settle
He might accept to settle at a particular amount.
Its not compulsory for him to accept less amount if the drawer is in a difficult situation.
If one is not able to pay right away then you can make an agreement to pay in instalments.
Should agree to what he can pay not make false promises.
The Amount can be right but he may require some time to pay since his business hasn't received money or lost job.
This would help the debtor.
You can always settle with each other on amicable terms and proceed accordingly in Court if a section 138 case is pending.
In case you have any question about Settlement due to non payment in stipulated time period, Defaulting in payment of instalments or Case already registered please feel free to contact Advocate BK Singh.
Mention the balance amount which is pending, amount that will be paid and how the case will be disposed.
It would include documentation of the original transaction and amount owed as well as the debtors circumstances.
Documents you may need:
BK Singh can inform you of what documents you may need.
All documents that you provide must be honest about what has happened. If you give false information or tell creditors that you will pay when you know you won't this can create more problems for you.
In case you fail to clear the dues within given period of time as prescribed by Law. Or when there is an objectionable amount or a case is already initiated against you.
It's always a good idea to take help from an Advocate. In case you receive a Notice u/s 138 and are unable to pay within given period of time or you have made part payment but a complaint is filed.
You might be in a situation where multiple cheques have been dishonored. The Claimant says that it was a Security Cheque. Various Settlement terms are being offered. Cheque was given by a Company. Balance amount is in question etc.
If you are a Payee and you have requested payment numerous times and are not being paid. Or Settlement terms don't meet your requirements.
Consult Advocate BK Singh to know what you can do.
If you reside in Delhi NCR. You might want to know from which Court you can file a case. There is already a case going on etc.
People from Lucknow, Jaipur, Chandigarh, Mumbai, Chennai, Kolkata and other cities across India.
Can approach an Advocate as soon as possible if they have their due date approaching.
Cheque Bounce Lawyer is your single window for all legal help when Cheque bounces.
In case of Disputed amount, Notice, Settlement of dues, Already filed complaint and consequences after settlement. He can be of help.
When you are stuck in difficult phase financially. You can reach out to Advocate BK Singh to find out if the settlement amount is as per your requirement. How much you have paid and where do you stand now.
He can also guide you if you are the one who issued cheque and want to recover money.
Advocate BK Singh can help you with both situations subject to limitations in his practice.
No assurance of Settlement/Court Judgment is provided. But we will try our best to provide you with a legal remedy.
Visit us to know more about
Cheque Bounce Lawyer
.
Yes you can attempt to settle the matter with the complainer. But you will not be aware of where you stand since you have lost your job. You can always consult an advocate BK Singh.
You can request for an installment. It depends on the creditor if they want to accept it or not. State how much you will be paying and when and if there is any current case going on.
Depends on your case. There are many factors to take into account when looking at the law. If you are able to settle your case or have a defence that may work you may not go to jail.
If you meet the requirements of the act you can compound the offence under section 147. If both parties can come to a settlement then you can proceed through the proper channels to have the case dismissed.
The creditor can refuse your settlement offer. They don't have to settle with you for less money or give you more time to pay. So you cant force them to.
If you don't pay within 15 days from the day you receive the notice and you meet the requirements of the act. You are liable to commit an offence under section 138 of the act. Consult an advocate BK Singh.
Yes you can try and settle. Depending on how many cheques you have issued it could create more complications with your case.
No you will have to comply with certain procedures esolving Cheque Bounce Problems During Financial Hardship if you wish to have your case dismissed.
Find out how much money you actually owe. After that if they are demanding more money than you owe you can speak to an advocate BK Singh.
Yes it can help you avoid the hassle of going to court. But no one can tell you if you will be able to settle your case or not.
If a person bounces a cheque because of financial problems it can cause great stress on your part. However if that person continues to be short on money and does not inform you about it you may face a lengthy case.
You can always go for a settlement if everything is documented and both parties agree to settle and meet the criteria.
The Borrower/Cheque drawer should be aware that Hardship does not mean you don't have to pay your debts. Creditors should also try and find out if they will receive there money back within a certain timeframe.
For any cheque bounce cases or non payment/section 138 settlement contact our cheque bounce lawyer Advocate BK Singh.
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Frequently Asked Questions
1. Can i settle a cheque bounce case if im unemployed?
2. Can I ask for installment payment when i receive a notice?
3. Will I go to jail if i cant afford the money?
4. Is it possible to settle once a case is filed?
5. Can the creditor say no to my settlement?
6. What if i am unable to pay within 15 days of receiving the notice?
7. Can i settle with a creditor if there are multiple cheques?
8. If I sign a settlement will the criminal case be dropped?
9. What if the creditor wants more money then what i owe?
10. Will settling my cheque bounce case help me out of a lengthy court procedure?
Final Thoughts:
There's no reason for concern. There is no difficult-to-understand legalese.
Someone who has helped many people with the same problems gives you clear, honest advice. We want to make the legal process easy to understand and use for everyone.
