Cheque Bounce – recovery of amount if borrower not able to pay

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    • #3106

      Dear Sir,
      Under section 138 , if the borrower is not in position to pay the cheque amount and he doesnot have any property to be attached how the court can recover the amount ,either under 138 or under civil recovery suit.

    • #3110

      If any fine is imposed under Section 138 of the Negotiable Instruments Act to compensate for the cheque amount, such amount can be recovered in accordance with the procedure laid down in Section 421 of the Criminal Procedure Code, which is as under:

      421. Warrant for levy of fine.— (1) When an offender has been sentenced to pay a fine, the Court passing the sentence may take action for the recovery of the fine in either or both of the following ways, that is to say, it may—

      (a) issue a warrant for the levy of the amount by attachment and sale of any movable property belonging to the offender;

      (b) issue a warrant to the Collector of the district, authorising him to realise the amount as arrears of land revenue from the movable or immovable property, or both, of the defaulter:

      Provided that, if the sentence directs that in default of payment of the fine, the offender shall be imprisoned, and if such offender has undergone the whole of such imprisonment in default, no Court shall issue such warrant unless, for special reasons to be recorded in writing, it considers it necessary so to do, or unless it has made an order for the payment of expenses or compensation out of the fine under Section 357.

      (2) The State Government may make rules regulating the manner in which warrants under clause (a) of sub-section (1) are to be executed, and for the summary determination of any claims made by any person other than the offender in respect of any property attached in execution of such warrant.

      (3) Where the Court issues a warrant to the Collector under clause (b) of sub-section (1), the Collector shall realise the amount in accordance with the law relating to recovery of arrears of land revenue, as if such warrant were a certificate issued under such law:

      Provided that no such warrant shall be executed by the arrest or detention in prison of the offender.”

      In this regard, Section 431 of the Cr.P.C. may also be relevant:

      431. Money ordered to be paid recoverable as a fine.— Any money (other than a fine) payable by virtue of any order made under this Code, and the method of recovery of which is not otherwise expressly provided for, shall be recoverable as if it were a fine:

      Provided that Section 421 shall, in its application to an order under Section 359, by virtue of this section, be construed as if in the proviso to sub-section (1) of Section 421, after the words and figures “under Section 357”, the words and figures “or an order for payment of costs under Section 359” had been inserted.”

      Please also note that the court is also empowered to award additional imprisonment to the accused in default of payment of fine.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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