In India, handling the dishonour of a foreign bank cheque can involve several types of legal actions, each tailored to address different aspects of the issue.
- Civil Suit for Recovery: If a foreign cheque is dishonoured and the drawer owes money to the payee, a Civil Suit for recovery can be initiated. This involves filing a suit in a Civil Court to recover the owed amount. Evidence, including the dishonoured cheque and related correspondence, must be presented. The jurisdiction for such a suit is typically based on where the transaction occurred or where the payee is located.
- Complaint under Negotiable Instruments Act (Section 138): While Section 138 of the Negotiable Instruments Act primarily covers domestic cheques, it may be relevant if the cheque’s dishonour affects a local payee. This complaint can be filed in the local Magistrate’s Court to address the dishonour and seek recovery, although enforcing this can be complex due to the foreign aspect.
- International Arbitration or Mediation: For cross-border disputes, international arbitration or mediation may be pursued. This method helps resolve disputes involving foreign transactions efficiently, avoiding lengthy court procedures.
- Legal Action in Foreign Jurisdiction: If the foreign bank or drawer is located outside India, legal action may need to be taken in the foreign jurisdiction, involving international legal processes and coordination with legal experts.
These legal avenues ensure that the dishonour of a foreign bank cheque is addressed effectively, balancing domestic and international legal requirements. Cheque Bounce Advisor (CBA), India’s Fastest Growing Cheque Advisory Firm, is efficiently providing tailor made solutions through its Expertise Team to every related situations at very nominal costs. Contact now for FREE Consultation (Limited Time Offer 24 x 7) at CBA Helpline No.989-1188-400
