Rajpal Yadav case! How many rupees worth check bounce can result in jail? Know the punishment and fine

Check Bounce Law: Famous Bollywood comedian Rajpal Yadav has been sentenced to six months in jail in the check bounce case. This case against Rajpal is related to the film “Aata Pata Lapata”. In 2010, a company named Murali Projects Private Limited had given about five crore rupees for this film.

Rajpal Yadav had given several checks to the company to repay the loan. Which bounced. For this reason a case has been filed against him. In 2018, a Delhi trial court convicted Rajpal Yadav and sentenced him to six months in jail.

The Negotiable Instruments Act of 1881 clearly states when check bounce is considered a crime, how a complaint can be made, and who is responsible for what. Complete punishment, responsibility and trial process are explained in sections 138 to 143A of IPC.

Indian Railways: The game of ticket booking will change from March 1! What is the new rule for passengers?

Can I go to jail for loan default?

Mere failure to repay the loan does not lead to jail time, as it is generally considered a civil matter and not a criminal offence. Banks or finance companies generally resort to legal recovery processes, which include notices, civil suits or confiscation of securities.

However, if there is fraud, forged documents, deliberate conspiracy to stop payment, or check bounce while taking the loan, then the case can be criminal. In such circumstances, there can be jail, as happened in the case of Rajpal Yadav.

Who will be responsible if a company issues a cheque?

If a check of a company bounces, not only the company but also the people responsible for the functioning of the company at that time will be responsible. A person can be acquitted only if he can prove that the mistake was committed without his knowledge or that he had exercised due care to prevent it.

Loved 7 times, yet Madhubala was alone in agony at the time of death; Painful last story of Bollywood beauty

Under this section, “company” includes firms and other groups. “Director” also includes partners of the firm. However, government nominated directors of public companies have been exempted.

How to file check bounce complaint?

A case under Section 138 starts only when the recipient of the money or the legal holder files a written complaint. Generally the complaint has to be filed within one month after the expiry of the 15 day period. If there is a delay, the court can condone the delay if there is good cause.

These cases can be heard only by a Metropolitan Magistrate or a First-Class Judicial Magistrate. Section 142A also ensures that multiple cases against the same person are heard in the same court so that there is uniformity in the decisions. If necessary, pending cases can also be transferred.

Noida Metro: Now Noida people will get relief! CM Yogi gave a big gift, metro will run from Pari Chowk to Botanical Garden

The post Rajpal Yadav case! How many rupees worth check bounce can result in jail? Know the punishment and fine appeared first on Latest.