Simple Guide for Cheque Bounce Due to Account Closed
Cheque Bounce Due to Account Closed: A Simple Guide by Legal Light Consulting
At Legal Light Consulting (LLC), we make legal matters clear and simple. One tough situation is when a cheque bounces because the account it was drawn from is closed.
This might happen if your employer gave you a cheque for your salary or wages, but their account no longer exists. Here’s an easy guide based on a case where a cheque worth Rs. 15,00,00,000 (15 crore) bounced on January 1, 2025.
What Happened?
You worked for an employer who promised to pay your salary or wages with a cheque. But when you tried to cash it, the bank said the account was closed. The return memo came on January 1, 2025. To prove you’re owed this money, you might have:
- Written Proof: An employment agreement, Memorandum of Understanding (MoU), or invoice.
- Digital Proof: Emails, WhatsApp messages, or text messages.
What Can You Do?
Don’t worry—you have options to get your money back. Legal Light Consulting can help you with these steps:
1. Criminal Case (Negotiable Instruments Act)
You can file a case under the Negotiable Instruments Act, 1881, which covers cheque bounces, even when the account is closed.
- Key Laws:
- Section 138: Punishes cheque dishonor, including closed accounts.
- Section 117: Rules for compensation.
- Key Laws:
- Where to File: Near the bank branch that returned the cheque (e.g., UCO Bank, Supreme Court area, New Delhi).
- Time Limit: Send a legal notice to your employer by January 31, 2025 (within 30 days of January 1, 2025). If you missed this, you could try re-presenting the cheque within 90 days of its date to restart the process.
- Process: The court can handle this quickly, and you might get some money upfront while the case goes on.
2. Cheating Case (FIR)
If you think your employer tricked you by giving a cheque from a closed account, file a police complaint under the Bharatiya Nyaya Sanhita, 2023 (Section 318).
- Where to File: Same jurisdiction as above.
- Time Limit: File before January 1, 2026 (1 year).
- Process: The police will look into it, and the court will decide.
3. Breach of Trust Case (FIR)
If your employer broke your trust by not paying you, file a case under Section 316 of the Bharatiya Nyaya Sanhita, 2023.
- Where to File: Same jurisdiction.
- Time Limit: File before January 1, 2028 (3 years).
- Process: Similar to the cheating case, with police help.
4. Mediation
You could try settling this outside court through mediation under the Mediation Act, 2023.
- Steps: Send a notice (required), then start mediation.
- Time Limit: Must finish within a set time (check with a lawyer).
- Benefit: It’s faster and less stressful than court.
5. Recovery Suit (Civil Case)
File a civil case under the Civil Procedure Code, 1908 (Order 37) and the Indian Contract Act, 1872 (Section 73) to recover your money.
- Where to File: Same jurisdiction (High Court of Delhi due to the large amount).
- Time Limit: File before January 1, 2028 (3 years).
- Court Fees: Around Rs. 14,66,344.
- Process: The court can order your employer to pay you, plus extra for your trouble.
Key Tips
- In your complaint, only mention details about the salary or wages tied to the cheque.
- If your employer says they don’t owe you, you’ll need to show your proof (agreement, messages, etc.).
- The law assumes they owe you unless they challenge it. If they do, and they bring evidence, you’ll need to prove them wrong.
Courts have sometimes sided with employers when the worker couldn’t prove their case. Strong evidence is your best friend.
How Legal Light Consulting Can Help
Legal steps can feel overwhelming, especially with Rs. 15 crore at stake. At Legal Light Consulting, we:
- Help you pick the right option (criminal, mediation, or civil).
- Handle deadlines and paperwork for you.
- Make sure your case is solid.
Final Thoughts
This article is just for general knowledge, not legal advice. Laws can differ based on your situation, so it’s smart to get expert help. Contact Legal Light Consulting today—our experienced lawyers can guide you to recover your hard-earned money smoothly.
Disclaimer: Legal Light Consulting is not responsible for any errors in this article. Always consult a professional lawyer for advice specific to your case.
