Section 138 of NI Act – several people jointly issuing a single notice

[ANKEET BOHRA]

If a party bounces cheques of 15 people , can 15 people jointly file a single notice against same ? And if total amount of people constitute more than crore can case file in high court?

[Dr. Ashok Dhamija]

Since cheques issued in favour of several persons have bounced, even though the drawer is the same person, each such matter will constitute a separate case. Therefore, it is not advisable to send a joint notice to the drawer of the cheques. They should send individual notices and may have to file individual cases.

Secondly, irrespective of the amount of the cheque (whether Rs. 1 crore or above or less), the cheque bounce case under Section 138 of the Negotiable Instruments Act has to be filed only in the court of the Magistrate. Such case cannot be filed in the high court directly.

     

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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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