“What are the chances of winning a cheque bounce case?” If you ask this question to an advocate, the most probable answer would be “It Depends!” It’s a fact, because every case in the Court depends upon the specific facts, evidence available, interpretation of laws, effective arguments, and the conduct of parties. An almost won case can be lost due to complete absence and non-bailable warrants issued against the drawer of cheque. A totally lost case can be won just by finding a gap in legal notice or other technicalities. So yes, the chances depend upon a lot of factors. If nothing works in the Trial Court, there is scope for appeal. Let’s understand what all it takes to increase the chances of succeeding a cheque bounce case for both the parties.
Exploring the Chances of Winning a Cheque Bounce Case
In legal matters, there is no escape or shortcut for wrongdoers. If it is a genuine case hitting all the required aspects, there is no pothole for succeeding in the cheque bounce case. However, some legal knowledge may definitely come handy to protect your legitimate interests. Section 138 of the Negotiable Instruments Act lays the provision for when a cheque is dishonoured. Here are some scenarios which decide the chances of winning a cheque bounce case:
Existence of a Legal Debt
One of the preliminary ingredients of a cheque bounce case under Section 138 of NI Act is the existence of a legal debt. The provision clarifies that unless the cheque was issued for clearing a legal debt, the said cheque cannot be a means of initiating criminal proceedings under 138 of NI Act. Therefore, if the cheque in question was issued for the purpose of security or as a gift, it cannot lead to a criminal case under NI Act.
Courts are very strict on the debt part in cases of cheque dishonour. If it is proved that the cheque was issued against a legal liability and the same got dishonoured, the burden shifts upon the accused to prove his/her stance.
Legal Notice for Cheque Bounce
Many people know that the legal action for a bounced cheque initiates by serving a legal notice to the drawer of the cheque. The timelines are strict and the provision under Section 138 itself lays about serving a notice to the drawer of cheque. The purpose of legal notice is to inform about cheque bounce, propose a timeline within which the failed payment may be made through other means, and convey the intention to proceed legally in case of failure.
So if it so happens that no such notice has been served, then the chances of winning a cheque bounce case drop. It may be noted that a notice for cheque bounce may not necessarily be sent through a lawyer. Courts have time and again reaffirmed that such a notice may be sent directly by the party, through online platforms or even be handwritten. The mere requirement is that the ingredients should be conclusive for such notice. If the timeline or purpose of such notice is not duly served, it may hamper the case.
Delay in Filing Complaint
The chances of winning a cheque bounce case can significantly increase with prompt action. The timeline for cheque bounce cases should be duly followed, be it serving a legal notice, or filing a complaint.
If there is delay in filing a complaint, this can benefit the accused person. If delay was genuine, like some health issues or the drawer’s assurance to pay the amount at a certain date, the Court may allow condonation of delay. In such cases, the first argument pertains to whether delay should be condoned and the accused gets the chance to participate at this time as well.
Scope of Repayment
Courts in India have time and again clarified that the strict nature of criminal proceedings under Section 138 of NI Act pertain to financial security and not punishment. Therefore, if repayment has been proposed or partially made by the drawer, the other party should accept the same or seek full and final payment sooner.
On the other hand, if the complainant is in denial and the accused proves repayment after receiving legal notice, the chances of winning a cheque bounce case increase for the accused. In all circumstances, the Court looks at the evidence and genuine approach of the parties.
Compounding in Cheque Bounce Case
Criminal proceedings for a cheque bounce aim at providing security for financial purposes. Case laws on compounding in cheque bounce cases reflect that while punishment is not the object, the decision on compounding depends upon the complainant. If the drawer proposes payment with interest, the Court cannot force the complainant into compounding unless he/she consents to it. If that happens, the chances of winning a cheque bounce case succeed for both parties, where one evades a criminal case and another gets his/her money back.
Conclusion
It can be seen here that who wins and who loses a cheque bounce case is a matter of whose case is stronger. If the ingredients of Section 138 of NI Act are duly complied with, the chances of winning a cheque bounce case go up for the complainant. However, if the accused breaks through one of those ingredients, either through gaps in notice, complaint, or other evidence, the burden shifts back to the complainant.
FAQs on Chances of Winning Cheque Bounce Cases
- How to make a cheque bounce case strong?
Answer- Keeping all the evidentiary documents in hand and complying with the legal requirements under Section 138 of Negotiable Instruments Act is the key to a stronger cheque bounce case. Specifics can be answered by a lawyer based on the particular facts.
- Can the accused win in cheque bounce case?
Answer- Yes, if the complainant’s case is not strong enough, or if the accused has evidence to show his/her innocence against a false case. Evidence plays a crucial role in cheque bounce cases for the accused. In any case, burden of proof lies with the complainant to prove cheque dishonour as per Section 138 of NI Act.
- How to escape from a cheque bounce case?
Answer- As someone whose payment has been blocked by a bounced cheque, you can prompt the drawer of cheque to timely pay the amount, or face legal consequences. At the time of receiving cheque, it is important to duly check the name, date and signature on the cheque.
For the drawer of cheque, assuring sufficient balance while drawing a cheque is the first key to avoid cheque bounce case. If you have received a legal notice, repayment is the second safe option. If at all the boat has sailed and complaint has been lodged with the Magistrate for a bounced cheque, it can be escaped either by strong evidence, or successful compounding.
- Is there bail for a cheque bounce case?
Answer- Yes, cheque bounce is a bailable offence. In fact, arrest is rare in a cheque bounce case, unless there is proof of the accused tampering with the evidence or interfering with witnesses.
