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