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Author Topic: Filing a Cheque Bounce complaint and Section 142 NI Act  (Read 1705 times)

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Offline advamrita

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Filing a Cheque Bounce complaint and Section 142 NI Act
« on: July 25, 2013, 09:44:05 PM »
Once the drawer fails to make payment within 15 days from the date of receipt of notice from the payee, the cause of action arises for filing a complaint on expiry of notice period period.

The complaint has to be filed within 30 days from the date of cause of action and  in the relevant court having jurisdiction.

Recently the Supreme court  in the case of   MSR Leathers V S planniappan & Anr, held that  a payee or holder of a cheque can now issue a statutory notice to the drawer each time the cheque is dishonoured and institute proceedings on the basis of a second or successive statutory notice as well.

Section 142 of Act mandates that no court shall take cognizance of the offence unless a complaint in writing is given by the payee or holder in due course as the case may be and such complaint has to be made within one month from the date of cause of action.

 

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