Answer By law4u team
When a person faces a complaint for cheque bounce (dishonored cheque) in India, they have certain defenses available to them. These defenses can be used to contest the allegations and defend themselves in the legal proceedings. Here are some common defenses that can be employed: Lack of Validity of the Cheque: The accused can argue that the cheque in question is not legally valid for various reasons, such as it being post-dated, stale, or not properly filled out. Insufficiency of Funds: If the accused can prove that there were sufficient funds in their bank account when the cheque was issued, or that the dishonor occurred due to a banking error, they can use this as a defense. No Debt or Liability: The accused can assert that there was no legally enforceable debt or liability at the time the cheque was issued. This defense is applicable if the cheque was given as a gift, a security deposit, or for any other purpose that did not involve a debt. Forgery or Unauthorized Signature: If the accused can prove that their signature on the cheque was forged, or that the cheque was issued without their knowledge or authorization, it can be used as a defense. Stop Payment: If the accused had issued a stop-payment order to the bank before the presentation of the cheque, they may use this as a defense. However, this defense requires proper documentation of the stop-payment instruction. Material Alteration: If the complainant has altered the cheque in any way, such as changing the amount or date, the accused can raise the issue of material alteration as a defense. Notice: One of the key requirements under Section 138 of the Negotiable Instruments Act is that the holder of the bounced cheque must have given notice to the drawer of the cheque within 30 days of the dishonor of the cheque. If proper notice was not given or was not given in accordance with the law, the accused can use this as a defense. Bank Error: If the dishonor of the cheque occurred due to a bank error, the accused can use this as a defense. They would need to provide evidence, such as bank statements or communication with the bank, to support this claim. No Intention to Defraud: The accused can argue that there was no intention to defraud the complainant, and the issuance of the bounced cheque was a genuine mistake or an error. Compromise or Settlement: If the parties have reached a settlement or compromise after the issuance of the bounced cheque, this can be used as a defense. It's important to note that the specific facts and circumstances of each case will determine the viability of these defenses. Legal advice from a qualified attorney is crucial when dealing with a complaint for cheque bounce to assess the best defense strategy based on the individual case.
