Cheque dishonour due to insufficient funds, stop payment instructions, or account closed constitutes a serious criminal offense under Section 138 of the Negotiable Instruments Act, 1881. Adv. Jyoti Chavhan provides strategic representation for creditors seeking financial recovery as well as defendants contesting frivolous claims.
Statutory Timeline & Legal Steps:
- Mandatory 30-Day Legal Demand Notice: Issuing statutory demand notice within 30 days of receiving bank memo.
- 15-Day Cure Period: Giving the drawer 15 days to clear unpaid cheque amount.
- Magistrate Criminal Complaint: Filing summary criminal complaint before Metropolitan / Judicial Magistrate Court within 30 days of cause of action.
- Section 143A Interim Compensation: Applying for up to 20% interim compensation awarded to complainant during trial.
- Compounding & Out-of-Court Settlement: Facilitating compounding of offenses upon full financial recovery.
