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Cheque Bounce

(Legal Notice drafting typically takes about 3 working days)
  • Understanding the issues
  • Scrutinizing the instrument against which cheque was issued
  • Scrutinizing the Documents/Mails
  • Drafting the 1st Notice
  • Incorporate Changes suggested by Client (2 Rounds)
  • Sending the Notice to the party
  • Scrutinizing the Reply of Opposite Party
  • Drafting the Legal Notice
  • Starting At:
    Rs 3,999/- All Inclusive

What is Cheque Bounce?

Currently there are over 2 million Cheque Bounce cases pending in Indian Courts, But this is just Tip of the iceberg as there are many more Cheque Bounce cases were aggrieved parties are not sure as what to do in such situation.

If a cheque is drawn by a person (cheque payee) on an account maintained by him for the purpose of payment of money to another person (cheque holder) either to clear a debt or a liability, but the amount drawn by the person to whom the money is owed is returned unpaid by the bank then it is considered to be Cheque Bounce Case. Such a case of cheque bouncing is punishable with imprisonment for a term which may extend to two years, or with a fine, the amount of fine would be double the amount of the cheque. The first step in Cheque Bounce case is to send a notice to the party and without this case cannot be filed in Court. Sending a notice is a must to initiate court proceeding as the opposite party is given a fair chance to either defend their position or correct their wrongdoing.

In fact, in majority of cases there is an out of court settlement after sending notice. Some of the most common cases of Cheque Bounce has been non-payment to vendors, non-payment of Salary, EMIs for personal loans etc. Also, any delay in sending legal notice weakens your chances in court.

Ca4you-legal undertakes the job of sending the legal notice through our professionals which ensures that you have sent a carefully drafted legal notice. Ca4you-legal also gives you a second opinion on the already drafted legal notice to ensure that wordings are correct. Complete process of sending Legal Notice in Cheque Bounce Case starts at Rs 3,999/- at ca4you-legal.


What is included in our company registration package?

  • Understanding the issues
  • Scrutinizing the instrument against which cheque was issued
  • Scrutinizing the Documents/Mails
  • Drafting the 1st Notice
  • Incorporate Changes suggested by Client (2 Rounds)
  • Sending the Notice to the party
  • Scrutinizing the Reply of Opposite Party
  • Drafting the Legal Notice

Procedure for Cheque Bounce Legal Notice Service


Documents Required For Cheque Bounce Legal Notice?

  • All material related to case
  • All mails exchange related
  • Information asked by ca4you in required format

Advantages of Legal Notice Service

Mandatory Step

Sending a Legal Notice is a mandatory step before actually taking a case to court. You cannot file a court case without this step.

Settlement Chances

We have observed empirically that there are chances of out of court settlement once Legal Notice is sent as the opposite party, if wrong, are scared to go to court.



FAQ'S

Q. What is the method to send Legal Notice in Cheque Bounce Case?

Q. What are the reasons of Cheque Bounce in which Cheque Bounce case is considered to be valid?

The reasons for Cheque Bounce for which Cheque Bounce is filed are

Reason 1:

The money being held in that account of the cheque payee is insufficient or less to honour the cheque amount.

Reason 2:

Or the cheque amount exceeds the amount arranged to be paid from that account because of an agreement to that effect,

Then, in both the above, it would be a case of cheque bounce, that is when the cheque is presented by the cheque holder (the person to whom the money by cheque is paid to clear debt) to the bank, the bank would not honour the cheque (dishonour of cheque) and hence the holder would be unable to collect his money which he loaned to the payee. Such a case of cheque bouncing is punishable with imprisonment for a term which may extend to two years, or with a fine, the amount of fine would be double the amount of the cheque.

Cheque Bounce for mismatch of signature is not considered for Cheque Bounce Case.

Q. What are the conditions for which Cheque Bounce case is applicable?

Penalty or fine can only be imposed in Cheque Bounce Case if the following conditions are satisfied:

Condition 1:

The cheque has been presented by the cheque drawer( the person to whom the cheque is given in order to repay a debt) to the bank within a period 3 months from the date on which it was drawn or within the period of its validity, whichever of the two is earlier.

Condition 2:

The holder of the cheque (that is, to whom the payment is supposed to be given) makes a demand for the payment of the said amount of money by giving a notice in writing to the drawer of the cheque (by whom the payment is made through cheque) within 30 days of the receipt of information by him from the bank that the cheque has been returned without being accepted.

Condition 3:

The drawer of the cheque fails to make the payment of the said amount of money by cheque within 15 days, after receiving the notice by the cheque holder regarding the return of the cheque amount as unpaid, and the cheque being dishonoured.

Q. What are the penalty in case of delay in Cheque Bounce Cases?

After the recent judgement of the Supreme Court, keeping in mind the numerous cases of cheque bouncing approaching the courts, it has been decided that:

Delay in Trial Court:

If the matter of cheque bouncing is delayed in the Trial Court, the defaulter (cheque payee) will have to pay penalty up to 10% of the cheque amount to avoid going to jail.

Delay in High Court:

If the matter of cheque bouncing is delayed in the High Court, the defaulter (cheque payee) will have to pay penalty up to 15% of the cheque amount to avoid going to jail.

Delay in Supreme Court:

If the matter of cheque bouncing is delayed in the Supreme Court, the defaulter (cheque payee) will have to pay penalty up to 20% of the cheque amount to avoid going to jail.

Q. If a cheque has been issued to someone by his ex employers but it bounced. What is the legal opinion the employee can take?

If a cheque presented by the ex-employer of the employee has bounced then the employee can take legal action against the ex-employer. Firstly, the person must issue a legal notice in writing to the ex-employer who issued the cheque, demanding him to make the payment of money. But the notice by the person to the ex-employer has to be made within 30days of the receipt of information regarding the return of the cheque as unpaid by the bank to the person.

If within 15 days of the receipt of notice issued by the person regarding return of cheque and non-payment of money to the person, the ex-employer fails to make the payment, the person or ex -employee may proceed against the ex-employer in a District Magistrate Court by filing a criminal case for dishonour of cheque against the ex-employer.

If the person feels aggrieved by the decision of the Magistrate Court, or unsatisfied, the person may then file a case in the District Consumer Court against the ex-employer for payment of amount due to him and also for compensation of damages for delay in payment of amount due and deliberate evasion of payment. Still further, the person also has the option to file a case against the ex-employer in a District Labour Court in order to seek redressal against non-payment of due salary.

The matter can also be taken to the Civil Court by the aggrieved person against the ex-employer under Summary Procedure for fast recovery of salary due to him.



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