A cheque is said to have "bounced" when submitted to the bank for payment after being received from the drawer and is rejected and returned unpaid. The most common causes of a bounced cheque are a lack of funds in the account of the drawer.
The legal notice serves as a warning to the cheque's drawer that failure to pay the specified amount would result in legal action being brought against him under the Negotiable Instruments Act in the appropriate court.
Parties Involved in the Case of Cheque Bounce
Drawer- The person who issues the cheque is the account holder
Drawee- It is essentially the bank from which the cheque is drawn
Payee- It is the person designated in the cheque to receive payment
Key Requirements for Legal Notice
There are certain requirements of the notice to be fulfilled for cheque bounce. They are:
The initial condition is that a cheque must be written for a specified liability
It must be within a six-month period of validity
The bank should have rejected the cheque since there weren't enough funds in the account
After a check bounces, the notice must be delivered within 30 days
After receiving a notice that a cheque had bounced, the drawer has 15 days to complete the payments; after that, legal action is initiated against him
If the requirements above are met, legal action may be taken in court within 30 days after the expiration of the 15 days time limit for payment of the cheque's amount following the drawer's receipt of a notice that the cheque had bounced. The court in the area where the cheque was submitted for payment is where the lawsuit for cheque bounce can be filed in an appropriate way with the help of a knowledgeable lawyer under Section 138 of the Negotiable Instruments Act.
Drafting a Cheque Bounce Notice
An individual should be cautious while drafting a notice of a bounced check. As it is a warning about impending legal action, the legal notice must be prepared appropriately. Therefore, a lawyer can help draft a proper notice without any errors. After the drafting gets finished, it must be printed on plain paper or the organization letterhead before being handed over to the person paying the cheque amount.
The following must be included in a cheque bounce notice:
Name of the cheque’s recipient
Name and location of the cheque's issuer
The cheque's return date
Cause of cheque returns
Request for immediate alternative payment to the check issuer, and
In the event that payments are still not made as agreed, the drawer may go to court and register a criminal complaint in accordance with Section 138 of the Negotiable Instruments Act.
Legal Action over a Cheque Bounce
Sending the drawer a notice that a cheque has bounced and asking him to pay the money is the first step when a cheque bounces. If he disregards the notice, legal action is taken against him. The following prerequisites must be met in order to file a lawsuit against the drawer and begin legal proceedings, which only a competent lawyer can fulfill on behalf of the payee to punish the wrongdoer.
Within three months after the day the cheque was issued, the payee must present the cheque
The cheque should be returned by the bank for insufficient funds
By sending a formal legal notice to the drawer that the cheque has bounced, the payee makes a claim for payment of the amount on the cheque
After receiving a receipt from the bank that the cheque was returned, the notice of a bounced cheque must be given within thirty days
Following receipt of the notice of a bounced cheque, the drawer has fifteen days to repay the amount of the cheque to the payee.
You will need a lawyer to draft legal notices and initiate legal proceedings in a cheque bounce or fraud case. If you want the help of lawyers to file cheque bounce cases in Jaipur, then Cheque Bounce Lawyers Jaipur can be appointed, and if you want the help of lawyers to file cheque bounce cases in Noida, then Cheque Bounce Lawyers Noida can be assigned. Likewise, Cheque Bounce Lawyers Chandigarh can be assigned if you want the help of lawyers to file cheque bounce cases in Chandigarh.
You can talk to a lawyer at Lead India Law. At Lead India Law, you can ask questions to experts online for free and receive free legal advice online.
Visit Us: - https://www.leadindia.law
Call Us: - +91-8800788535
Email: care@leadindia.law
Facebook: - https://www.facebook.com/leadindialaw
LinkedIn: - https://www.linkedin.com/company/76353439
Twitter: - https://twitter.com/leadindialaw
Pinterest: - https://in.pinterest.com/lawleadindia
Instagram: -https://www.instagram.com/leadindialawofficial
Comentarios