An Economic Analysis of Check Bounce Cases : In India Check Bounce | Page 4

REPORT ON CHECK BOUNCE CASES
If we see the above figure which is taken from Law Commission of India Report 245, it shows the
overall pending cases in India, the Red Line indicates the rate of pending Check Bounce Cases in
different States, although the Red portion might seem to a reader to be a very grey area, but 7.8% is
a huge area which is about roughly between 4-5million cases that is covered and needs economic
attention. Annexure 1 will show you the data in numerical form. Although States like Bihar and
Sikkim have a low check bounce rate but the same but on a average these cases are high and is af-
fecting the dispersal of justice 2 .
PROCEDURE OF GETTING RELIEF
1. Complaint – to be filed under Section 138 of the NI Act before the Magistrate Court wherein
the Payee/Complainant should be present in Court at the time of filing such a complaint.
2. Sworn Statement – This is an Affidavit which will be filed by the Complainant before Court
3. Summons – Issued to the Drawer/Defaulter through Court.
4. Bail – Once the Accused receives the summons, he/she will have to appear in Court on the date
mentioned in the summons along with his/her Advocate who shall file Vakalath and bail application.
When the Accused applies for bail, he/she will either have to give a personal bond for an amount
which will be decided by the Court as Surety amount or he/she will have to be accompanied by any
of his/her family or friend who will act as a Surety. In such a case, Surety application will be filed
along with the bail application along with income certificate/land records (of the surety) and the
person who is providing Surety will have to be present in Court along with the Accused. Since this
offence is a bailable offence, the Court will immediately grant bail, provided the procedure has been
carried out correctly 3 .
4. Plea – The judge will ask the Accused if he/she accepts the offence of having dishonoured the
cheque. If the Accused accepts the offence, he/she will have to plead guilty. If he/she doesn’t, then
he can plead not guilty and choose to raise a defence.
2
3
Law Commission of India Report 245
Ram Naresh Chaudhary, Law Relating to Cheques: New Horizons, Digital Signature, E-cheques, Dishonour of
Cheques as Penal Offence, Deep and Deep Publications, 01-Jan-2009, p 383