A suit can be filed in any competent court in whose jurisdiction any of the following acts have occurred:
- Place of drawing of the cheque,
- Address of bank where cheque was presented (holders bank address),
- Address of bank where cheque is payable (drawers bank address)
- Place from where notice was received by drawer of cheque
Legal action against dishonor of cheque in India
The payee/holder of the cheque can file criminal case under section 138 of Negotiable Instrument Act against the drawer of the cheque and simultaneously can also file a civil case for recovery.
Can both civil and criminal proceedings be filed for dishonor of cheque in India?
Yes, there can be both civil and criminal proceedings in a cheque bounce or dishonor of cheque suit in India.
Penalty for a suit of cheque bounce or dishonor of cheque in India
The penalty for a dishonor of cheque case under Section 138 of N.I. Act is: Imprisonment upto 2 years; or Fine upto twice the amount of cheque value; or Both fine and imprisonment.