Date : 10 Sep, 2018
Post By Barbie Duggal
Cheque bounce or dishonor of cheque is a serious offense in India punishable with fine or imprisonment or both under section 138 of the Negotiable Instruments Act. In certain conditions, say in a situation when the amount mentioned on the cheque is large, in that case, a case of cheating can also be filed against the person who signed the cheque (also called the ‘’drawer”) under section 420 of the Indian Penal Code.
A bounced cheque becomes a matter of a headache for the person depositing the cheque because first of all, it delays the transaction and hence, causes wastage of time and resources, the bank also might issue penalty charges on the one who is depositing the cheque. It could occur due to a variety of reasons.
There might be some discrepancy in the cheque, there might be insufficient funds in the person’s account who issued the cheque. It might also be possible that the drawer has instructed his bank to not entertain the cheque. The aggrieved can legally proceed against the person who issued a cheque by filing a cheque bounce case against the drawer. Following documents are required to file a cheque bounce case:
1) Original cheque and return memo
2) Copy of notice and original postal receipts.
3) Evidence affidavit.
First of all, a legal notice must be sent to the drawer within thirty days of cheque bounce. One cannot proceed against the drawer without sending a legal notice informing him of his fault and before the deadline of fifteen days to reimburse the bounced amount.
If the drawer does not pay the amount within fifteen days from receiving the notice, then the aggrieved can file a case against him. The legal notice has to be sent within thirty days of the day the cheque bounces. The cheque bounce notice should be sent by registered post so as to note the date of issuing the notice. The language of the notice has to be precise and to the point, without any mistakes. One should take the help of a legal attorney to draft the notice.
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