Cheque Bounce Notice

In today's time, no doubt online transaction has become popular, but there are still many people who prefer to pay through cheque. It is considered a reliable means of money transactions today. In such a situation, you should make the payment through a cheque very carefully because a lot of care has to be taken while filling out the cheque. The cheque may bounce on a slight mistake and you may have to pay a fine if the cheque bounces. In some particular circumstances, you can also be prosecuted in the case of cheque bounce and have to go to jail.

What is a cheque bounce?

•  Filling a cheque is easy, but one must keep a few things in mind before issuing one, as due to some mistakes, your cheque may bounce.
•  For example, suppose someone has given you a cheque for payment. You put that cheque in the bank. In such a situation, the person giving the cheque must have the same amount in his account as the cheque has been given. If this does not happen, then the cheque bounces. That is, the amount of the cheque of rupees given, that much amount is not in the bank account. In the language of the bank, it is called a dishonored cheque.

What is a Cheque bounce notice?

According to Section 138 of the Negotiable Instruments Act, if a cheque bounces, a case of cheque bounce is instituted. Still, before such a case is initiated, the person giving the cheque is informed through a notice.
The meaning of this notice is that if the cheque given by the person who has given the cheque gets bounced in the bank due to any reason, then the person who has given the cheque should be informed about this matter, and the amount should be asked from him for which the payment should be made. The cheque has been given. Even after this notice, if the person giving the cheque does not pay the amount mentioned in the cheque, then under section 138 of the Negotiable Instruments Act, the person receiving the cheque can institute a lawsuit and get the money mentioned in the cheque. The amount spent in litigation can receive interest on it.

Reasons for cheque bounce:

•    Insufficient funds in the bank account
•    Signature not found
•    Incorrect account number
•    Overwriting or mistake in the cheque
•    Suspicion of a forged cheque
•    Mutilated cheque
•    The issue with the date of the cheque
•    Cheque Expiration
•    Amount in words and figures not the same
•    Overdraft limit
•    Closure of the chequer's account
•    Stoppage of payment by a chequer

What happens when a cheque bounces?

Banks charge penalties from their customers if the cheque bounces. Bouncing a cheque is considered a crime in India. Cheque Bounce According to the Negotiable Instrument Act 1881. A person can be prosecuted in case of a cheque bounce.

What is section 138?

Suppose the cheque issued bounces due to insufficient balance in the account. So it comes under the category of a crime. For which the person issuing the cheque can be punished with imprisonment of 2 years and a fine of double the cheque amount. 

But some conditions have also been set for this:

•    Cheque bounce comes under the category of crime only then. When presented to the bank within six months or so. As long as it is valid.
•    Legal notice must be sent to the drawer of the cheque within 30 days from the receipt of information by the payee of the cheque that the cheque has bounced in the bank. That your cheque has bounced. And the cheque amount should be paid.
•    Suppose the person issuing the cheque does not pay the cheque amount within 15 days of receiving the legal notice. The payee of the cheque can then proceed further.

Procedure for Cheque Bounce Notice: When the cheque bounces:

•    A receipt is first given to the creditor by the bank.
•    Explaining the reason for the cheque bounce. 
•    After this, the creditor has to send notice to the debtor within 30 days. 
•    If there is no response from the debtor within 15 days of the notice, the creditor can file a complaint in the Court of Magistrate within one month from the date of lapse of 15 days in the notice. 
•    If the amount is not paid to you even after this, then a case can be filed against the debtor. 
•    According to Section 138 of the Negotiable Instrument Act 1881, dishonoring a cheque is a punishable offense. 
•    It is punishable with imprisonment of either description for a term that may extend to two years, with a fine, or with both.

For how long is the cheque valid?

By the way, everyone knows this thing. That the cheque is valid only for the next three months from the date of issue of the cheque, you can deposit your cheque in the account anytime if you go to the bank with the cheque after three months. So the bank will not clear your cheque because that cheque becomes invalid. And that cheque has no value left, because of which you will have to come back from the bank empty-handed.

FAQ’s

What happens when a cheque bounces?
When a cheque bounces in a situation within 30 days, a legal notice is sent to the person giving the cheque through an authorized advocate. In this notice, the reasons for the cheque bounce are told.

Which section is applicable for cheque bounce?
If the cheque bounces, the Indian Penal Code can be punished under IPC section 420.

How many years can be punished for cheque bounce?
In case of cheque bounce, the accused can be punished with imprisonment of up to 7 years and a fine.

What is the validity of the cheque?
The cheque's validity is up to 3 months from the date of writing the cheque. This means the cheque should be deposited in 90 days.

In how many days does the cheque clear?
The cheque gets cleared in 2 to 3 working days. No need to go from one bank to another to get the cheque cleared. The rather electronic photo has to be sent so that it is done quickly.

Why choose Vakilkaro?
Behind every successful law firm are the hard work of its advocate team and the trust of its clients. Advocates at Vakilkaro are well-experienced with the interpretation of statutes and have vast knowledge about every legal matter. If you have given someone a bounced cheque, you want to defend yourself and send a legal notice. So, you will need the best cheque-bouncing lawyer to send the legal notice to the opposite party. Nothing to worry about, as you can get India's top cheque-bouncing lawyer only from Vakilkaro. Vakilkaro is the first firm in India to make it possible to 'Send Cheque Bounce Notice Online' with 100% success in cheque bounce cases. Our expert cheque-bouncing lawyers create a strategy based on their vast experience.

Contact the best Cheque Bouncing Lawyer in Vakilkaro today. You can give us a call at 9828123489 or may write an Email also at help@vakilkaro.co.in. We are here to serve you 24/7.

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