According to the Negotiable Instruments Act, a cheque case is a serious crime that carries a prison sentence and a fine. To preserve his legal rights under the Negotiable Instruments Act, the drawer of the cheque must deliver the document within 30 days after the day it was dishonored. Cheque bounce or check non-payment is a serious infraction punishable in India by a fine or imprisonment, according to Section 138 of the Negotiable Instruments Act.
A check is a "bill of exchange" that is paid upon demand. The "drawer" is the person who issues the check, and the "drawee" is the person for whom the check is issued. Almost every transaction involves the usage of a check, including paying off loans, paying wages, paying bills, paying fees, etc. Daily, banks process and clear the vast majority of checks. To get payment documentation, checks are issued. However, checks continue to be a trusted form of payment for many people. Conversely, it's usually a good idea to print crossed "Account Payee Only" checks to prevent misuse.
How Can a Cheque Bounce Notice Be Sent?
Through our platform, you may draft a Cheque bounce notice for a cheque bounce case solution. The payee may file a criminal case in court within 30 days of the end of the 15-day notice period if the cheque issuer fails to make payment as agreed.
Check bounce complaints must be made to a court in the city where the check was presented. When the drafting is finished, a print on plain paper or the company letterhead is required before delivering it to the person who will be writing the check. Cheque bounce notices must include the following information:
Name of the check's recipient,
The check's issuer's name and address,
The check's return deadline,
Reasons for a returned check,
The check issuer has been asked for an immediate alternative payment, and the check has been issued by Section 138 of the Negotiable Instruments Act.
To correctly record the issuance date of the notice, a notice of check bounce is delivered by registered mail. The check beneficiary may keep one copy of the letter, while the other may be forwarded by registered mail to the check issuer.
Penalties and Punishment
Once the complaint, an affidavit, and any relevant paper trail have been filed, the court will issue a summons and schedule a hearing. If found guilty, the defaulter could be subject to a two-fold monetary fine, a sentence of up to two years in jail, or even both. The bank also has the authority to revoke checkbook privileges and shut an account for a pattern of failed checks. If the drawer settles the outstanding sum on the check within 15 days of receiving the notice, they have not breached any laws. If not, the payee has one month from the day the notice's 15-day deadline expires to file a complaint in the jurisdictional magistrate's court.
How Do You Start Legal Action If a Check Bounces?
Cheque Within 30 days of a dishonored check, the beneficiary sends the defaulter the cheque bounce Notice via registered mail. The notice of a bounced check must be written properly and include details about the transaction's type, the amount involved, the date the statement was deposited with the bank, the date the check bounced, the cause of the bounce, and the beneficiary's request for payment within 15 days.
If the cheque issuer defaults in payment, the payee may bring a criminal complaint in court within 30 days of the expiration of the 15-day notice period.
A court in the city where the check was presented must be contacted with complaints regarding check bounces.
The payee may file a criminal case in court within 30 days of the end of the 15-day notice period if the cheque issuer failed to make payment as agreed.
Cheque bounce complaints must be made to a court in the city where the check was presented.
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