The Negotiable Instruments Act primarily addresses cases involving dishonour of cheques that are within their validity period. The relevant section for criminal liability is Section 138, which deals with dishonour due to insufficient funds or exceeding the amount covered by the drawer’s account.
Validity of Cheques
A cheque is generally valid for three months from the date it is issued. Once this period lapses, the cheque is considered “outdated” or “stale.”
- Section 138: This section of the Act does not apply to outdated cheques. It specifically requires that the cheque be presented within its validity period and dishonoured due to insufficient funds or other reasons as prescribed.
Legal Position on Outdated Cheques
- No Criminal Liability: If a cheque is presented after its validity period has expired, it is usually not actionable under Section 138. Therefore, no criminal case can be made out under this section for the dishonour of an outdated cheque.
- Opt Civil Remedy: The holder of an outdated cheque may not be able to pursue a criminal case but might have the option to pursue civil remedies depending on the circumstances and the underlying agreement.
Possible Civil Actions
While criminal proceedings are not an option for outdated cheques, the holder may still consider civil remedies:
- Civil Suit: A civil suit for recovery might be filed if there was an underlying obligation or contract that the drawer failed to honour.
- Negotiations or Settlements: Parties can also opt for out-of-court settlements or negotiations to resolve the issue.
Legal Advice
Given the complexities of cheque laws and the specifics of individual cases, it’s advisable to consult an expert legal professional at Cheque Bounce Advisor [CBA] who can provide guidance tailored to your situation. Our experienced CBA Team can help determine whether any civil remedies are available and advice on the best course of action. Call CBA’s 24 x 7 Helpline Number/WhatsApp: +91-9891188400
