YES, a complaint case under Section 138 of the Negotiable Instruments Act can be filed against the dishonour of a SELF written bearer cheque, provided it meets the criteria outlined in the section. Here’s how it applies:
Section 138 of the Negotiable Instruments Act, 1881 pertains to dishonour of cheques due to insufficient funds or other specified reasons. It states that if a cheque drawn by a person on an account maintained by them with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid for insufficient funds or any other reason, the drawer of such a cheque shall be deemed to have committed an offence.
Key points for filing a complaint under Section 138:
- Cheque Issued: The cheque must have been issued by the drawer to discharge a debt or liability.
- Presentment: The cheque should have been presented to the bank within a period of three months or during its validity period, whichever is earlier.
- Reason for Dishonour: The cheque must have been dishonoured by the bank due to insufficient funds or exceeding the arrangement made by the drawer with the bank.
REGARDING BEARER CHEQUES:
- A bearer cheque is payable to the person or Holder of cheque who presents it to the bank for payment and does not require endorsement.
- If a self-written bearer cheque meets the criteria under Section 138 (such as being issued for the discharge of a debt or liability, and is dishonoured due to insufficient funds), a complaint can be filed against the drawer of the cheque by the Holder of the cheque being the beneficiary.
Therefore, whether the cheque is SELF written as a bearer cheque or otherwise, if it fulfils the conditions specified under Section 138 and is dishonoured by the bank, legal recourse can be sought by filing a complaint against the drawer under the provisions of the Negotiable Instruments Act.
