Cheque Bounce Notice to Defaulter

Section 138 of the Negotiable Instruments Act criminalizes such instances where a cheque issued has bounced when it is presented before the bank for payment. The cheque needs to necessarily have been drawn on the account of the account of the drawer of the cheque and must have bounced by reason of there being a lack of sufficient funds.  

When a cheque has bounced, it is necessary under Section 138 that a notice of the same is sent to the defaulter for giving him/her reasonable time to make payment of the amount. You must hire the services of the best Cheque Bounce lawyers in your locality to help you draft the notice at affordable prices.

Send Cheque Bounce Notice Online
At INR 2500

What You'll Get In The Package

Inclusion

  • 20 minutes consultation and advice from experienced top lawyers
  • Legal notice drafting to be sent to you for approval
  • Final legal notice drafting incorporating suggestions given by you (if any)
  • Dispatch of the final legal notice through registered post
  • The tracking number of the registered post shall be shared with you

Exclusion

  • Subsequent case after the legal notice has been sent is not included
  • You may hire the lawyer for any subsequent cases

Documents required for sending Legal Notice for Cheque Bounce Defaulter

  1. The original cheque that has bounced
  2. Cheque return memo issued by the bank
  3. A copy of the legal notice to be sent to the drawer of the cheque asking for the money to be paid
  4. Affidavit stating the preliminary evidence

Procedure of sending Legal Notice to Cheque Bounce Defaulter

  1. When a cheque has bounced, a cheque return memo is generated stating the reasons behind the same.
  2. The cheque return memo is sent to the drawer of the cheque informing him/her of the same.
  3. Now the drawer is given the opportunity to pay the money again voluntarily within a reasonable period of 15 days.
  4. If no payment is made, you must send a legal notice drafted by the top cheque bounce lawyers in your locality demanding the amount be paid to you.

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FAQs

What are the legal remedies in case of a cheque bounce?
In case of a cheque bounce, you must send a legal notice to the defaulter demanding payment of the amount due to you. This notice must be sent within 30 days of the date on which the bank has returned the cheque to you stating the reasons behind the cheque bounce. If the drawer doesn’t make the payment even after the notice has been sent to you, you may initiate legal action with the help of the top cheque bounce and recovery lawyers in your locality.
What is the penalty awarded to the defaulter in a cheque bounce case?
The defaulter may be punished with imprisonment that may extend up to 30 days and additional fine that may amount up to twice the amount that the cheque had been drawn for.
When can I move to Court after sending a notice?
You must file the complaint before a magistrate within 30 days of the last date given to the cheque issuer to make fresh payments. If the person who issued the cheque doesn’t make payment of the whole amount within 30 days of receiving the legal notice, then you may file a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881.
What can be done if the time for filing a case under Section 138 has expired?
In such cases that the 30 days time limitation has expired under Section 138, the remedy available to you is to get an alternate civil or criminal case. You may file a summary suit for recovery of money under Order 37 of the CPC or you may initiate criminal proceedings under Section 420 on grounds of cheating. Either of these proceedings may be initiated within 3 years of the date of the issue of the cheque.
Where can I file a cheque bounce case?
The jurisdiction of a case of cheque bounce is determined depending on the bank to which the cheque had been presented for withdrawal, i.e., in the Court in whose local jurisdiction limit the bank is located.
Can I recover legal expenses and interest on the cheque amount in case of a dishonoured cheque?
Under proceedings initiated under Section 138, there exists no provision for recovery of legal expenses or interest, however, the fine granted may extend up to twice the amount of the amount for which the cheque had been drawn. If proceedings are initiated as a summary suit for money recovery, you claim legal expenses and interest on the amount for which the cheque had been drawn.
What do I do if I lose the cheque return memo?
In case you lose the cheque return memo, you may approach the bank to issue another memo for you. For use as evidence, you may also use a bank statement in place of a cheque return memo.
What can be done if the defaulter’s address is not known?
If the defaulter’s address is unknown, the legal notice may be sent to his/her last known address.
What may be the reasons behind a cheque bounce?
A cheque may bounce for the following reasons: 1. Insufficiency of funds 2. Unmatched signature 3. Stale cheque 4. Post dated cheque 5. Payment halted by the drawer 6. Irregularity in amount written in figures and words 7. Damaged or disfigured cheque Of these conditions, however, you may initiate proceedings under the Negotiable Instruments Act only in the case of insufficiency of funds. Otherwise, you may initiate a civil summary suit for recovery or criminal suit for cheating.
How much does it cost for the drafting and dispatch of a legal notice for dishonour of the cheque?
Legistify provides you with the most experienced lawyers in your locality to help you draft and send a cheque bounce notice at cheap and reasonable costs.