Cheque Bounce Notice

The bouncing or dishonoring of a cheque can be defined as a situation where the cheque cannot be processed for payment further to the drawee as there are insufficient funds or no funds available in the drawer’s bank account. In this transaction, the drawee and the drawer are the two parties. The former one is the person, in whose favor the cheque is drawn or issued, whereas, the latter one is the person who issues or draws the cheque.

Read More
  • Quick
    Turnarounds

  • Value
    For Money

  • Expert
    Professionals

  • Custom
    Fit Solutions

  • Quick
    Turnarounds

  • Value
    For Money

  • Expert
    Professionals

  • Custom
    Fit Solutions

By submitting this form you agree to accept our of use, privacy policy and disclaimer.

HOW DOES IT WORK ?

HOW DOES IT WORK ?

Step 1

We subject expert will get in touch with you to understand your requirement

01

Step 2

We will draft and prepare the supporting documents.

02

Step 3

Sit back and relax! Let us take care of the rest of the process & help you every step of the way.

03

WHY CHOOSE LEGALO ?

Quick Turnarounds

Have access to a wide range of quality services at reasonable and competitive prices

Value For Money

We understand Time is the most valuable resource and are flexible and responsive to your requirements

Expert Professionals

We cater to a wide range of services across legal, CA, CS and consulting and bring to the table the most relevant and experienced professional to provide the right solution.

Custom Fit Solutions

We provide customized solutions to meet your unique requirements.

FREQUENTLY ASKED QUESTIONS ?

  • Legalo is a platform to help you connect with the best professionals, legal experts & financial experts to deliver efficient and cost-effective solutions to your business and personal needs.
  • Legalo offers a wide range of services from business, Accounting & Tax to Legal Solutions such as business structuring, company registration, Company licensing, intellectual property, trademark, copyrights registration, Patent Filing, GST & TDS registration/ Filing, Accounting Services, Corporate & labour Compliance , Franchising, Business sale & purchase, Personal/Civil/Property / criminal related legal services & more.
  • Legalo Connect you with the best industry experts to deliver efficient and cost effective, tailor-made solutions. We also understand that time is the most valuable resource and we offer solutions with a very quick turnaround time.
  • Legalo offers the following solutions namely Property title verification, Property registration, succession registration, Legal heir Certification, Will drafting & registration, Sale deed, Gift Deed, Residential rental agreement, relinquishment deed, will probate & more. Please check the links for more details
  • The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sec.
  • Legalo helps draft and send legal notices, Cheque bounce notices, Money recovery notices & more

FREQUENTLY ASKED QUESTIONS ?

faq

LEGAL BITS YOU SHOULD KNOW

pic pic

Reasons for Cheque bounce

  1. Insufficient FundsThis is one of the major reasons for cheque dishonor or cheque bounce. In this situation, where it is insufficient or lack of funds in the drawer’s bank account, the bank will stop the payment and also charge a penalty on both the drawer and the drawee. Therefore, to avoid the bouncing of cheque, it is advised that before issuing any cheque, the drawer must check that there are sufficient funds in his account.
  2. Mismatch of SignaturesThe cheque will dishonor if the signature of the drawer does not match with the signature in the bank’s record. This situation arises when people have different signatures for different accounts, they tend to get confused between them and eventually end up signing a wrong signature on the cheque.
  3. OverwritingThe cheque will bounce if there is any kind of overwriting or scribbles on the cheque.
  4. Wrong Details are Mentioned on the ChequeThe cheque will bounce is cases where the details mentioned by the drawer are incorrect like the wrong date is mentioned, or a date is mentioned which is more than three months old or, the drawer deposits a post-dated cheque earlier than that date. Also, in situations where there the amount specified in words is not the same as the amount mentioned under the numerical representation column.

How To Apply

Step 1 -  Send a Demand Notice to the person who has issued you a bounced cheque. Provide information about the dishonored cheque. Mention the date on which the cheque was issued and a copy of the dishonored memo should be attached.

Step 2- On receipt of the notice, the person has until 15 days to make the payment. If they fail to do so, a complaint can be lodged with the court in the prescribed format.

Step 3 – Submit an Oath Letter, A copy of the notice served along with the acknowledgment receipt, a photocopy of the memo, and the bounced cheque received.

Once the judicial court receives your complaint, it will go through the documents sent and verify them. Once the court is satisfied with your complaint, the complainant or his or her lawyers need to fill the Bhatta or Process Form, after which the accused is summoned by the court for a hearing. If the accused doesn’t appear in court, the judge can issue a bailable warrant against the concerned person.

Key Requirements

Legal charges and penalty

The offense of Dishonour of Cheque falls under the ambit of Section 138 of the Negotiable Instrument Act. According to this provision, it is a Criminal Offence, and therefore, the proceedings against this shall be dealt with following the Summary Trial Provisions of the Code of Criminal Procedure, 1973. They shall be tried by the Metropolitan Magistrate or the Judicial Magistrate of First Class.

How Legalo Can Help You

Our partners & associates bring years of experience to the table to help you navigate and deliver these works. Our company can customize a program to meet your specific needs and budget. If you need any legal or professional assistance in searching the right trademark for your business, contact us here.