An Ordinance on the victims of Bounce Cheque: Detailed Guide

An Ordinance on the victims of Bounce Cheque. An Ordinance (14th in just over a year) that brings smile on the victims of Bounce Cheque, Victims of cheque bounce rule now may

Anirudh Sonpal

An Ordinance on the victims of Bounce Cheque

An Ordinance on the victims of Bounce Cheque. An Ordinance (14th in just over a year) that brings smile on the victims of Bounce Cheque, Victims of cheque bounce rule now may have a reason to cheer. The Modi government today came up with another ordinance which enables the harassed victims in cheque bounce cases to file a suit against culpable individuals and entities in the place where cheque was presented for encashment. Now you can scroll down below and check complete details about “An Ordinance on the victims of Bounce Cheque”

An Ordinance on the victims of Bounce Cheque

This amends the Negotiable Instrument Act and overrides a judgment issued by Supreme Court in last August. That judgment read ‘’ the place, situs , or venue of judicial enquiry must logically be restricted to where the drawee bank is located ‘’. The drawee is referred as the bank which shall make the payment. So before the ordinance , the victims of dishonoured cheque had to make endless visits to that city or bank branch that had declined to clear the payment.

Consequences of Bounced Cheque:

For the Drawer: Bounced cheques can have negative consequences for the drawer, including:

  • Damage to credit score
  • Bank charges
  • Legal action by the payee

For the Payee: The payee may have to deal with the inconvenience of a bounced cheque and may need to take steps to collect the money owed. This may involve contacting the drawer to request payment, sending a demand letter, or even filing a lawsuit.

Cheque bounce case

There are five different actions that led up to cheque bounce case. These are

  • i) Drawing of cheque
  • ii) presenting the cheque to bank
  • iii) Returning the cheque unpaid by drawee bank
  • iv) Giving notice in write to the drawer of the cheque
  • v) Demanding payment of the amount within 30 days of dishonouring of cheque and failure of drawer to make payment within 15 days of receipt of notice.

This ordinance will revert to the position that that existed after the 1999 ruling and before the 2014 verdict ( the 2014 verdict had overturned 1999 ruling that allowed the victims to file cases in any magistrate court having jurisdiction over the local areas where five different actions took place ).

This ordinance has been widely welcomed. Mr. Sen a chartered accountant quoted ‘’ This was a problem for many of my clients whose cheque payments from big outstation firms had bounce. They had to travel several times to a court in a different city to pursue the case, adding cost of litigation’’

The ordinance also read that if three cases of bounced cheque were against one person or a firm then all these cases can be amalgamated into a single case.

What to Do if You Receive a Bounced Cheque

  • Contact the Drawer: Try to contact the drawer and inform them about the bounced cheque. There might be a genuine misunderstanding and they may be willing to rectify the situation.
  • Request Payment: You can request the drawer to pay the cheque amount along with any penalty fees.
  • Legal Action: If the drawer is unwilling to cooperate, you may consider taking legal action to recover the funds. This might involve sending a formal demand letter or filing a lawsuit.


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  1. What will happen to court fees paid in cheque bouncing case filed in Bhopal and after ordinance the same will have to be filed in Delhi. How to claim refund and what is the procedure.


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