ALL >> Legal >> View Article
Understand The Legal Aspects Of Cheque Bounce
A cheque bounce can happen for many reasons including insufficient funds, cheque validity expiration, damaged cheques, overwriting, etc. The Negotiable Instruments Act of 1881's Section 138 addresses incidents involving bounced cheques and specifies penalties for those found responsible. Let's understand the legal implications of cheque bounce in India.
Legal Implications of Cheque Bounce
Cheque bounce is a criminal offence in India under the stated Section 138 of the Negotiable Instruments Act. As a result, if a complaint is filed in court, the defaulter may be depending on the situation, get a prison sentence or a penalty that is up to twice the value of the cheque.
When the court determines that the violation was serious, it may impose also. In such cases, you need to consult the experienced Corporate Dispute Lawyer in Gurgaon to guide you through the process.
Required Documents in case of Cheque Bounce
To file a complaint against a party in a matter involving a returned financial instrument, you must submit an application form and the accompanying supporting documentation:
● Copy ...
... of the letter sent to the drawer.
● Evidence of notice delivery, such as a courier receipt or registered mail receipt.
● The original cheque is on file.
● Cheque return memo was issued by the drawer's banker
● Evidence of a legally enforceable debt or obligation.
Cheque Bounce Rules
There are specific Cheque Bounce rules that must be followed while submitting a Cheque Bounce complaint. These are as follows—
● Sending the offender a demand notice is the initial step.
● The offender has 15 days after receiving the notification to make the required payment.
● The payee must write a notice to the cheque drawer under Section 138 of the Negotiable Instruments Act of 1881 within 30 days of receiving the cheque return memo.
● The person filling out the cheque bounce case has every right to register a complaint with the court by presenting a written complaint together with appropriate papers if the drawer refuses to make the payment.
● Without a cheque return memo document, the court cannot continue the case.
● If the bounced check was presented as a gift or used to lend money for a loan payment, the defaulter could not be punished in accordance with the law regarding cheque bounces.
How a Corporate Dispute Lawyer in Gurgaon can Help
A corporate dispute lawyer can guide and issue a statutory notice to the party at fault. Mrs. Sapna Malik is an experienced corporate dispute lawyer in Gurgaon who has settled several corporate disputes with mediation.
About the Author:-
The Legal Eagle's Eye started with the aim to provide the best legal solution to the people. We have the most eligible experts to handle complex cases/matters. We take care of the privacy of each individual and listen to their query carefully.
Add Comment
Legal Articles
1. Experienced Will Lawyer Singapore: Ensuring Your Wishes Are Protected With Irb LawAuthor: Mr B
2. Cyber Crime Investigation Lawyer In Noida: Advocate Deepak
Author: Advocate Deepak
3. Property Lawyer In Dubai
Author: Thje Law Reporters
4. Uk Visa Refusal Appeal Guide: Navigate The Process Successfully
Author: The SmartMove2UK
5. Choose The Optimal Legal Structure For Your Saudi Venture
Author: jodonjo
6. Cyber Crime Lawyer In Bangalore: Advocate Deepak
Author: Advocate Deepak
7. Best Lawyer In Jaipur
Author: RN Mittal & Associates
8. Bail Lawyer In Cyber Crime Case In Noida: Advocate Deepak’s Expertise
Author: Advocate Deepak
9. The Role Of Notary And State Authorities In Sslc Certificate Attestation
Author: shareeba
10. Advocate Deepak: Your Trusted Cyber Crime Lawyer In Ahmedabad
Author: Advocate Deepak
11. Exploring Virtual Events And Webinars As Lead Generation Tools For Law Firms
Author: jamewilliams
12. Unlocking The Power Of Medical Record Analysis In Medico-legal Claims
Author: Eric Katherine
13. Representative Offices: A Strategic Gateway For International Business Expansion
Author: jodonjo
14. Ircc Police Certificate Validity - Everything You Need To Know
Author: Hardik Shah
15. Bail Lawyer In Cyber Crime Case In India: Advocate Deepak
Author: Advocate Deepak