Advocacy

Apart from criminal prosecution under Section 138 NI Act, a payee may file a civil suit for recovery of cheque amount under the Indian Contract Act and Limitation Act, 1963. Civil suits allow recovery of principal, interest, and costs, and can be pursued in parallel with criminal remedies. This note provides statutory guidance and a model plaint format.

If accused appeals, appellate court may order deposit of amount (minimum 20% of trial fine/compensation) to be deposited within 60 days (plus 30-day extension) and may release amount to complainant pending appeal. If appellant is later acquitted, complainant must refund with bank rate interest. Draft an application under Section 148 when filing/after appeal is filed.

Section 143A NI Act empowers courts to grant interim compensation to the complainant up to 20% of the cheque amount during trial. It applies when the accused pleads not guilty or upon framing of charges, and aims to provide temporary relief to complainants. This note explains statutory provisions, tactical use, and provides a model application draft.

A criminal complaint under Section 138 NI Act initiates prosecution for dishonour of cheque. The complaint must establish statutory ingredients clearly in chronological order, supported with documents. This section outlines essential pleadings, jurisdictional aspects, case law, and provides a skeleton draft format.

The demand notice under Section 138 NI Act is the foundation for cheque dishonour proceedings. It creates cause of action, must be sent within 30 days of dishonour information, and gives the drawer 15 days to make payment. Proof of service is vital for sustaining prosecution. This section provides statutory requirements, best practices, and a model draft notice.