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  • leadindia836
    • Jan 10, 2023
    • 3 min read

Procedure To Send A Legal Notice In India For Cheque Bounce

A cheque is an essential part of the financial system in different countries around the globe. A transaction through a cheque could be understood as one of the safest ways of steering business as it could be traced back if necessary. Talking about a cheque, one thing which comes to our mind is cheque bounce, as at some point in time we have all heard about it. In the following article, we are going to discuss the proper procedure to be followed to send a legal notice in case of a cheque bounce-

Parties involved in the transaction by a cheque-

  • Drawer- Customer or the account holder who issues the cheque

  • Drawee- Basically the Bank on which the cheque has been drawn, is called the ‘Drawee’.

  • Payee- The individual named in the cheque for getting the payment.

Cheque Bounce-


It is a term basically used to define the unsuccessful processing of a cheque due to various reasons. Non-sufficient funds in the account of the issuer are one of the major reasons for a bounced cheque. Some of the major reasons for cheque bounce have been mentioned below-

Insufficient funds- if your account lacks funds from which the cheque has been issued, it would result in a cheque bounce. Later, the issuer of the cheque has the option to either issue a new cheque or resolve the issue with the receiver of the cheque.

The wrong date has been mentioned on the cheque- though seems like a small factor, however, it could cause serious issues for your cheque not getting processed. Any difference or problem with the date could lead to cheque dishonor. This may include disfigured or scribbled numbers.

Damaged cheque- several banks in India do not entertain disfigured cheques on which details are not visible. Also, your cheque could get bounced if it has stains or marks.

Mismatch of Signature- it is one of the most common reasons for cheque bounce. If a signature is mismatched or doesn’t match the records of the bank, the cheque so issued will be tagged as bounced cheque.


Legal Notice for a cheque bounce-


Legal Notice For Cheque Dishonour is generally sent by the advocate on behalf of his/her client as a result of the non-payment of the cheque. Sending a legal notice implies that the beneficiary of the cheque would proceed with legal action if the payment for the cheque is not done immediately.

To issue a legal notice for cheque bounce the following conditions should be there-

  • They should be issued towards a liability

  • The cheque should be returned due to insufficiency of balance

  • The payee of the cheque could make a demand for the payment of the amount due by sending a notice in writing within 30 days of the receipt of the information by him/her from the banks that there are insufficient funds.

  • If the cheque drawer fails to provide a satisfactory reply or payment of the said amount within 15 days of the receipt of the legal notice for cheque bounce, legal action could be initiated within one month from the date when the legal notice was sent.

Conclusion


From the above discussion, it could be understood that a legal notice is sent to inform the party receiving the notice of the grievance faced by the sender as well as the last attempt to sort the issues out of court in a peaceful environment. For example, if a husband in a marriage wishes to end it, a Legal Notice For Divorce By Husband could be sent to the wife mentioning the grievances faced by him and the grounds on which he is seeking a divorce so that the wife has the apt amount of time to hire a lawyer and prepare her case.


Before sending a legal notice it is advised to seek legal assistance from an experienced lawyer as if the case does continue in court, the legal notice so sent would be an important document. Hence, if you wish to talk to a lawyer or seek free legal advice online, you may contact us at Lead India.


Call Us: - +91-8800788535

Email: care@leadindia.law

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