Who can file a complaint in a cheque bounce case?

Answer

A:

Great question. Let me explain this clearly in the context of Section 138 of the Negotiable Instruments Act, 1881.

Who Can File a Complaint in a Cheque Bounce Case?

1. The Payee (the person in whose favour the cheque was issued)

   • If a cheque is drawn in your favour and it bounces, you are the primary person who can file a complaint.

2. The Holder in Due Course

   • If the original payee transfers the cheque to someone else (by endorsement), that new holder can also file a case if the cheque is dishonoured.

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   • Example: A gave a cheque to B, but B endorsed it to C. If the cheque bounces, C can file the complaint.

3. Authorized Representative (for companies or firms)

   • If the payee is a company, partnership, or any legal entity, the complaint must be filed by a person authorized through a resolution, power of attorney, or board authority.

   • Example: If a company receives a cheque that bounces, a director, manager, or officer authorized by the board can file the case on behalf of the company.

4. Legal Heirs (in case of death of payee)

   • If the cheque was issued to a person who has passed away, his or her legal heirs (after proper substitution in court) can continue or file the case.

 Who Cannot File?

• Strangers or anyone who is not the payee, holder in due course, or legally authorized cannot file a complaint.

• Example: If A’s cheque to B bounces, B’s friend or relative cannot file the case unless B legally authorizes them.

• The payee, the holder in due course, or an authorized representative/legal heir is eligible to file a cheque bounce complaint.

• The law ensures only the rightful beneficiary can initiate proceedings, not just anyone.