how to recover money in 138 of ipc

Answer By law4u team

Section 138 of the Indian Penal Code (IPC) deals with the offense of dishonor of a cheque for insufficiency of funds or if it exceeds the amount arranged to be paid by the drawer's account. The drawer of the dishonored cheque can be held liable under this section. To recover the money under Section 138, you can follow the steps mentioned below: Legal Notice: The first step is to send a legal notice to the drawer within 30 days from the date of the "cheque bounce" notification received from the bank. The legal notice should demand the payment of the cheque amount within 15 days from the receipt of the notice. Filing a Complaint: If the drawer fails to make the payment within 15 days of receiving the legal notice, you can proceed to file a complaint under Section 138 of the Negotiable Instruments Act in the appropriate court. Jurisdiction: The complaint should be filed in the court within whose local jurisdiction the bank is situated where the payee has presented the cheque for payment. Court Proceedings: Once the complaint is filed, the court will issue summons to the drawer. The drawer will have to appear before the court, and if found guilty, they can be punished with imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, or with both. Compensation: The court may also direct the drawer to pay compensation to the payee which may extend to twice the amount of the cheque. It is essential to have proper legal representation during the legal proceedings to ensure a smooth and effective recovery process. Consulting a competent lawyer who specializes in matters related to Section 138 of the Negotiable Instruments Act will be beneficial in pursuing the case and recovering the money.

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