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Cheque Bounce

A cheque bounce sometimes referred to as a cheque non-payment, is a serious offence in India. The offence is punishable under the Negotiable Instruments Act by a fine, a jail sentence for defaulters, or both.

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Cheque Bounce Notice: What Does it Mean?

A cheque bounce sometimes referred to as a cheque non-payment, is a serious offence in India. The offence is punishable under the Negotiable Instruments Act by a fine, a jail sentence for defaulters, or both.

A beneficiary must send a cheque bounce notification to the cheque issuer within 30 days of the cheque's return in the event that a cheque bounces. The cheque bounce notification protects the beneficiary's rights under Section 138 of the NI Act.

A severe notification from the cheque recipient to the cheque issuer is known as legal notice for a bounced cheque. The beneficiary will sue the issuer of the cheque if it is not immediately cashed. In their notification of cheque bounce, each cheque recipient must make mention of Section 138 of the Negotiable Instruments Act.

These references describe when the cheque was offered, the reasons it was not paid, and a suggestion that the cheque issuer quickly arranges for payment using alternative means. Within 30 days of the return, the Beneficiary must send the notification.

Issuing a Legal Notice for Cheque Bounce

To write your notification of a bounced cheque, get in touch with insaf99. If you have already prepared the cheque bounce notification, you can print it on plain white paper or on your company's letterhead. Finally, you can hand it along to the person whose cheque bounced.

Notice of Cheque Bounce Content

The cheque bounce notice must contain the following details:

Name of the Beneficiary on the cheque

It is important to confirm the issuer's name and address.

The time that the cheque bounced back.

justification for the cheque's return

Concerning other payment methods

The cheque notice is then sent.

The beneficiary shall submit the notification by registered mail and shall include evidence of the date on which the notification was properly issued. The beneficiary of the cheque must keep one copy of the notification and send the other to the person who issued the cheque.

When Should You Send a Cheque Bounce Notice?

The check needs to be presented within six months of when it was issued.

There could not have been enough money to honour the check.

Within 15 days of the notice regarding the bouncing of the check being served, the maker of the check has not made the required payment.

Within 30 days following the check's bounce date, the recipient notified the maker of the check.

The check has been given out to cover any outstanding debt.

A lawyer can be hired online to do the same for you, or you can send a cheque bounce notice online

You may file a lawsuit if a cheque bounces.

The steps for the legal process are as follows:

Sending Notice of Cheque Bounce

Format for Legal Notice of cheque Bounce: Within 30 days of the dishonoured cheque, the payee must convey the notice to the defaulter through overnight delivery, registered mail, or post with acknowledgement necessary. The payee is in charge of ensuring that the notification is formatted correctly and includes the information below:

  • Type of Transaction and Amount
  • Deposit Date of the Cheque
  • Reason for a bounced cheque payment is requested within 15 days of the cheque's bounce date.
  • Filing of Criminal Cases

If the defaulter does not make the required payment within 15 days of receiving the notice, the payee will file a criminal complaint in court within one month of the notice's expiration. A bounced cheque complaint can be made by the payee at the court where the cheque was presented.

Hearing in court

Following the payee's filing, the court will issue a summons and schedule a hearing in line with Section 138 of the Negotiable Instruments Act. The cheque defaulter will be required by the court to offer surety and show up in court until the matter is settled.

To know more about such legal procedures and find profess assistance, visit insaaf99.com now!

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