Section 138 of Negotiable Instrument Act (As amended) [Section 138] is popularly called as Cheque Bouncing case and this is one of the most trusted and success legal remedy being availed almost by all at their first instance till the new law came under Insolvency and Bankruptcy Code for its various benefits and among all great benefits, the benefit of this proceedings under Section 138 is of being a Criminal proceedings and thereby criminal provisions takes care of the trial proceedings under Section 138. Section 138 is a summary trail and the procedure is made very simple but there is no hidden fact that a single case under Section 138 takes an average 2.5 years and or more and then there is appeal and appeal and hence there is no end to the same and infact most of the case which are being piled up are specially filed by NBFC, Banks, Financial Institutions, etc. However, the motive of this Article is to understand what are the common mistaken is made which makes this summary trial going against the Complainant and or delay the case to many years.
From here the provisions of proceedings under Section 138 start. Please note that over a period of time the various judgements have made one thing clear that though Section 138 is a summary criminal trial proceedings but is a very technical provision and even a small mistake or typo error may land the case as dismissed against the Complainant and hence more vigilance is required to ensure that the case to be filed under Section 138 first hits all the ingredients of N. I Act and then all the facts are stated proper. Here I am of the view that the Complainant shall take the assistance of skilled and experienced lawyer and not take in any manner online legal services as this will only make the good case even worst case. To know why I don’t prefer one taking online legal services, please click on the link Know Your Customer
[Note: I always of the view that Lawyers are an Asset and is a step towards Business Growth and if you have the system of having legal audit done in your organisation then for sure you half of the problems are resolved till you reach from para 1 to 5 as mentioned above]
There can be many mistakes in addition but have stated relevant ones and if you think your matter is delayed or you feel that a second option is relevant to know whether your filed case is having all the ingredients or you feel that your matter is got stuck, then you can speak to us for know how to take your litigation matter faster. Note that Litigation is slow but by some vigilance and act, you can make it faster.
There is no doubt that if all the Business Entities totally comply with Pre-Litigation measures then for sure the Courts case will becomes less and if filed will be in a position to weaken the accused stand and will make them settling the matter and if not, then for sure accused will not be in a good position to fight.
THE LEGAL DESK have been taking care of Recovery matters since more than 16 years. Please note that filing the case in the Court shall be the last resort as it is rightly said that ‘Litigate rarely, negotiate mostly, but settle always” and we at THE LEGAL DESK believes in this statement and infact in our view if there is a Legal System in place in Business entity, chances of visiting court for recovery will be at reduce percentage. Please note that the term ‘Litigate rarely, means that this shall be your last resort and not that you totally ignore the Litigation, the term “negotiate mostly” means that if your Pre-Litigation measures are strong and in compliance and mistakes are avoided then this will only force the opposite party to negotiate and settle and this is where you shall be agile to negotiate and the term “, but settle always” means if above two terms are taken care, third will follow by accused itself with no acts from our end.