An Economic Analysis of Check Bounce Cases : In India Check Bounce | Page 6

CASE STUDY Assume a situation in which a plaintiff got a check of Rs 2,00,000 / - from the defendant , which was dishonoured by the Bank , even after giving several notices , the amount was not paid by the Defendant to the Plaintiff , the Plaintiff decides to take legal recourse by the following :
On an average a lawyer would take between 5000 to 15000 INR for his each appearance in the court of law . On the first day , a complaint would be filed , After that the procedure as discussed in the previous section would be followed , with the lawyer charging for each and every procedure . It is not that the same issue gets disposed immediately in a span of 14 or 15 days , it takes months gap between each procedure followed by adjournments due to certain factors as a result the least time that would be taken to dispose off the matter would be 2 years , but on an average it always extends more than 3 years . We would sum up the externalities :
SR NO .
EXTERNALITY
COST
1
Fee of Appearance in the Court
5000 X 7
2
Fee of Argument
7000
3
Fee for Leading Evidence
10,000
4
Fee for Legal Notice
5000
5
Typing per Pge
20 x 20
6
Notary Attestation
500
7
Reply
5000
8
Transport
1000 - 1400
In fee of appearance we include :
1 .
Plea
2 .
Cross Examination
3 .
Evidence by Complainant
4 .
Argument of Accused
5 .
Judgement
6 .
Final Order
Adding all the externalities together we get an average cost of Rs 32,000 ( approximate ), for a person
to get a legal remedy in court , hence it would be beneficial for a person to approach the court