Can drawer be arrested?

Answer

A:

Yes, the drawer of a cheque can be arrested in certain circumstances under Indian law.

Legal Position

• A cheque that bounces due to insufficient funds or similar reasons attracts Section 138 of the Negotiable Instruments Act, 1881 (NI Act).

• This is a criminal offence, punishable with imprisonment of up to 2 years and/or fine up to twice the cheque amount.

• However, arrest is not immediate on dishonour. The legal process must be followed.

Process Before Arrest

1. Cheque Dishonour Notice – The payee must send a demand notice within 30 days of receiving the return memo.

2. 15 Days Grace Period – The drawer gets 15 days to make the payment.

3. Filing of Complaint – If no payment is made, the payee can file a criminal complaint in court.

4. Summons / Bailable Warrant – The court first issues a summons. If the drawer fails to appear, a bailable warrant may be issued.

5. Non-Bailable Warrant / Arrest – Continuous non-appearance or evasion of proceedings may lead to a non-bailable warrant and arrest.

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7. Important Points

• Arrest is not automatic; it comes only if the accused ignores court summons repeatedly.

• Many cheque bounce cases end in settlement or compounding, so actual imprisonment or arrest is less common.

• Civil liability (recovery of money) and criminal liability (punishment) are parallel.

A drawer can be arrested if he ignores court proceedings after a cheque bounce case is filed, but not just because the cheque was dishonoured.