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Cheque Bounce News: Delaying a cheque bounce case can now prove costly. According to the High Court, settling the matter on time offers relief, whereas delays could result in an additional charge of up to 10% of the cheque amount.

Cheque Bounce Court Case: The Punjab and Haryana High Court has stated that while a timely settlement brings relief, delays lead to higher extra charges based on the cheque amount. If your cheque has bounced and the matter has reached court, dragging it out could be expensive. During the hearing of a case, the Punjab and Haryana High Court clarified that if both parties settle in time, they can avoid heavier liabilities. However, as the case progresses, the additional amount required for a settlement increases.

The issue arose from a cheque bounce case heard by the High Court. The accused had initially been convicted by the trial court, and the Sessions Court had subsequently dismissed their appeal. When the matter reached the High Court, both parties reached a mutual settlement. While approving the settlement, the court cited established guidelines laid down by the Supreme Court.

5% Extra Charge at the District Court Level

According to Supreme Court guidelines, if a cheque bounce case is resolved at the initial stage, no extra charge is levied. However, if a settlement is reached after the defense evidence has been recorded but before the trial court delivers its verdict, an additional charge of 5% of the cheque amount may be imposed.

If the case proceeds beyond the District Court to the Sessions Court or High Court, this extra charge can rise to 7.5% of the cheque amount. Furthermore, if the matter is resolved after reaching the Supreme Court, the charge can increase to as much as 10%. This amount is payable in addition to the original cheque amount.

Settlement Possible Even After Sentencing

The High Court reiterated that a cheque bounce case can be resolved through a settlement even after a sentence has been handed down. While the court has the authority to waive additional charges, this would only occur in exceptional circumstances, and the court would be required to record the reasons for doing so.

In other words, if there is a possibility of a settlement in a cheque bounce case, it is prudent to reach one as soon as possible. Doing so helps avoid lengthy court proceedings, saves time, and prevents the imposition of additional charges.