Cheque Bouncing Law

SMS VARANASI

Supreme Court Settles Law on Where to File a Complaint:

Bounced cheque must only be filed at the place where the bank dishonored it. The Supreme Court (SC) ruled on Friday that a complaint about a bounced cheque must only be filed at the place where the bank dishonored it, settling doubts raised by its own earlier conflicting judgments on the jurisdiction of a magistrate. Some judgments had specified the place where the cheque was issued, others from where the notice of dishonor was sent and still others the place of receipt. Owing to this confusion in law, the matter was referred to a larger bench of the SC. A three-judge bench headed by T S Thakur unanimously laid down that the place of dishonor is the right place to file a complaint. However, to avoid inconvenience to persons already prosecuting such cases, the new rule is to come into force only with respect to cases in the future. Those in which trials have begun will remain in the same courts.

SMS VARANASI

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