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Cheque is legal instrument and considered a form of a Bill of Exchange. And if a person issues a check for an amount that exceeds the current balance of your bank account, or if your name or signature does not match, or if there are any other errors, your check will be dishonored or gets bounced. Bounced checks are also known as "dishonor of cheque".
At Law Samadhan, we understand the importance of prompt action when it comes to financial matters. That's why we offer expert assistance in drafting and sending cheque bounce notices, ensuring that you get the results you deserve. Our team of experienced legal professionals will guide you through the entire process, from initial consultation to successful resolution.
There can be numerous reasons of dishonoring of check. Some of reasonthat can cause a cheque bounce are-
Insufficient opening balance in your bank account can cause checks to be bounced.
A cheque bounce can also happen when there is an error regarding the signature of the drawer.
A Cheque is usually valid for three months. This means that the cheque must be deposited in the bank before the 3 months are up. Otherwise, the cheque itself will be void.
A postdated cheque is a check that is dated in the future, but if it is deposited before the due date, which can also result in the cheque bounce.
Check bounces can also occur if the check is for an amount that exceeds your overdraft limit.
For a legal notice for cheque bounce to be valid, it has tomeet certain criteria and the format should be correct.The legal notice must be in reference to Section 138 of the Negotiable Instruments Act, 1881.The notice must be presented to the drawer of the cheque within 30 days of the return of the cheque by the bank and it is recommend seeking advice of experienced lawyer in cheque bounce case.
A reply to a legal notice of cheque or payment of cheque should be done within 15 days. And the failure in replying this legal notice of cheque bounce will result in legal proceeding against you. And the legal complaint can be filed within 30 days from the delivery of legal notice. And to avoid all of this the first step would be to give a reply to the legal notice for your defense or pay the cheque amount to avoid any further legal proceedings.
The process for filing a cheque bounce case in India involves presenting a complaint to the local police, who will then investigate the matter and refer it to the court if necessary. The court will hear evidence from both parties and make a ruling based on the evidence presented.
The legal consequences of a cheque bounce in India can include fines, imprisonment, or both, depending on the circumstances of the case. The Negotiable Instruments Act, 1881 governs the issue of cheque bounce in India and sets out the legal framework for dealing with such cases.
If a Cheque Bounce Notice is received in India, the recipient should take immediate action to rectify the issue and ensure that sufficient funds are available in the account to cover future cheques. They should also consider consulting a professional to understand their rights and obligations under Indian law.
A Cheque Bounce Notice can negatively impact a person's credit score in India, as it is considered a sign of financial instability.
If a false Cheque Bounce Notice is received in India, the recipient should immediately consult a professional to understand their rights and the best course of action. They may also choose to file a complaint with the relevant authorities to investigate the matter.