Legal Notice for Cheque Bounce in Pune

Introduction

Recently your cheque got bounced and you are thinking of bringing legal action against the person who has drawn the cheque upon you then you are at the right place to bring legal action by sending a legal notice to that person in Pune. Before divulging the minute details of the procedure of sending a legal notice in Pune let’s quickly understand what is a cheque and what dishonor of a cheque is. 

What is a Cheque? 

A cheque is a negotiable instrument that is drawn by a person directing the bank to make payment to the person presenting it. Cheques are the widely used medium for making payments nowadays because carrying a huge amount of cash brings a huge responsibility and liability. When the cheque is presented to the bank for clearing and the bank denies the payment of such amount due to insufficiency of the funds in the account of the person issuing it, this situation is known as the dishonor of the cheque (how to deal with a dishonored cheque has been discussed in below detail).

What are the main elements of a Cheque in Pune?

There are 8 prominent elements of a Cheque that make it unique and the most demanding mode of payment in Pune. This runs as:

1. Payee’s Name: The most important thing that a cheque contains is the name of the Payee so that it can be made easier for the bank to release the funds in the account of the Payee. 
2. Date of issuance: The date when the Drawer issues the cheque is noted in the cheque itself because as per the law, a cheque remains valid for a period of 3 months and hence the Payee is required to submit it to the bank for getting the cheque encashed. 
3. Account Number: A cheque always carries with itself the account number of the Drawer already pre-printed in the Cheque.  
4. Amount of Consideration: The other most important aspect of a cheque is the amount of consideration for which it has been issued is required to be mentioned there. 
5. Amount in Words: The Drawer is required to mention the amount of consideration for which the cheque is being issued in words and in numbers as well. 
6. Of Bearer option: This option is exercised in case the Payee is not a specific person or the Payee is not clear then the Drawer draws the cheque in favor “of bearer”. 
7. Cheque Number: In order to stop any kind of manipulation at the bottom of the cheque a MICR number and a unique cheque number are provided. 

Hence, these are the essential elements mentioned on the Cheques in Pune.

Relevance of E-Cheques in Pune

The relevancy of an e-cheque remains on the same pedestal as that of the paper-based cheques. The only difference between an E-cheque and paper based Cheque is the E-Cheque is signed electronically by the Drawer and there is no need to manually go to the bank to submit and thereby encash it. 

Parties involved in a Cheque Transaction in Pune

There are three important parties involved in a cheque transaction and these are as: 

1. Drawer: As the name implies is a person who issues the cheque in favor of the bank for the purpose of clearing a certain amount of funds from their account. 
2. Drawee: A drawee is an institution on whose favor the cheque is issued. Drawee are usually the banks. 
3. Payee: A payee is the person who is going to receive the funds from the bank. 

These are all the important parties to a transaction of Cheques in Pune.

What can be the reasons for dishonoring a Cheque in Pune? 

On various accounts (as explained below) a Cheque can be dishonored by the Drawee Bank in Pune. The reasons are as: 

1. Not having sufficient funds in the Drawer’s Bank Account
2. Cheque is tormented 
3. Expiry of the duration i.e. after 3 months of the due date
4. Closing of the account by the Drawer before the date of the cheque
5. Mismatch in the signature of the Drawer
6. Mismatch in the consideration amount in either words or figures
7. On account of death, insanity, or insolvency of the Drawer
8. Absence of the date
9. By an order of the Drawer to not move forward with the clearing process of the cheque
10. By an order of the Court to stop the payment
11. Overwriting of the Cheque
12. If the name of the Payee is not clear or absent

Thus, this is the list of reasons upon which a bank may dishonor a Cheque. However, the above list is only illustrative and not exhaustive there may be other additional circumstances that may account for one of the reasons for dishonoring the Cheque in Pune. It is purely a matter based on the nature of the transactions.

Who can issue a Cheque Bounce Notice in Pune?

Usually, it is the aggrieved who issues a legal notice for Chequie Bounce in Pune but if the Payee is unable to send it, they may request a legal counsel to send the legal notice for Cheque Bounce on their behalf. This has also been a recommendation by the desk of experts because a legal expert will be well-versed and aware of all the legalities involved in the procedure of sending a legal notice for Cheque Bounce in Pune. 

What happens when a Cheque returns as unpaid in Pune?

When a bank is unable to encash a cheque due to the numerous reasons (usually due to insufficiency of the funds in the Drawer’s account) depicted in the above list the cheque is returned back to the Payee but quoting the reason for which it could not be encased, this situation is known as Dishonour of the Cheque. The bank sends the dishonored cheque along with the memo which clearly states the reason for the dishonor. A legal notice for Cheque Bounce can also be sent in the cases of debts and liabilities and not for gifts or charities. 

Legal Notice for Cheque Bounce to a Company in Pune

As a Company is a separate entity therefore in the case where the Drawer is a Company the Payee is required to send the legal notice in the name of the company and at the same time they can also involve the head or director of the institution or the organisation. The head or director of the organisation can be absolved from their liability if they are in a position to satisfy that this has been done without their knowledge and they have exercised all the due diligence. 

What are the negative impacts of a Bounced Cheque in Pune?

There are some serious disadvantages involved in a Cheque Bounce matter in Pune. These are:

1. Conflict: The most negative impact that a bounced cheque creates is a conflict between the Drawer and Payee that may take the matter before the Court of law
2. Disrupted Payments: If the Payee is in need of money and the cheque they present to the bank gets bounced in such a circumstance it may become a matter of financial crisis for the Payee.
3. Impact on Credit Rating: A repetitive episode of Cheque bounce may lower the credit rating of the Drawer. 

Thus, these are the three main negative impacts that a bounced cheque has in Pune. 

What is the procedure for serving a legal notice for the Cheque Bounce in Pune?

As such there is no straighjacket formula for sending a legal notice for Cheque Bounce in Pune. The Payee is required to send a legal notice to the Drawer of the Cheque demanding the sum of money secured by way of the Cheque. The Payee is required to send a legal notice asking for the payment of money within 30 days after the dishonor of the Cheque and they are required to wait for a further period of 15 days for the Drawer after receiving the legal notice to clear all their dues if the Drawer after 15 days of serving the legal notice fails to make the repayment of the money then the Payee may initiate a criminal case against the Drawer. 

A help from a lawyer is required to serve a legal notice upon the Drawer because a legal expert will know the nitty gritty of the negotiable instrument and they will help you in a better way to present your money recovery in Pune. 

What are the main elements that a Legal Notice for Cheque Bounce should incorporate in Pune?

There is a long list of important elements that should not be missed while drafting and thereby sending a legal notice for cheque bounce in Pune. These elements are as under:

1. Number of the Cheque: As we are well aware that the cheque is unique in itself and has its own number therefore a legal notice is required to incorporate the number of the cheque.
2. Name and address of both the Parties: The most important element that a legal notice for a bounced cheque in Pune should contain is the name and address of both the involved parties.
3. Reason provided by the Bank: The next important part of the legal notice is that it should mention the reason provided by the bank for the dishonor of the cheque.
4. Important Dates: All the important dates should be incorporated into the legal notice. The date when the Drawer draws the cheque and the date when the Payee presents the cheque has to be incorporated in the legal notice.
5. Brief Facts: The Payee is required to briefly mention all the legal facts bringing the action of the claim.
6. Applicable Provisions: The legal notice should also mention Section 138 Negotiable Instrument Act and the legal actions that can be brought against the Drawer.
7. Direction: A direction to the Drawer by the Payee with the legal notice to make the payment of the sum assured by way of the cheque within 15 days is required to be provided.
8. Criminal Complaint: This part is in continuation with the above mentioned direction of filing the criminal complaint against the Drawer if they fail to make any sort of repayment of the amount. 
9. Signature: The last step mentioned in the legal notice is the signature of the advocate drafting the legal notice for Cheque Bounce in Pune. 

Thus, these are the main elements of a legal notice for cheque bounce in Pune and are required to incorporate within itself.

Documents required to send a Legal Notice for Cheque Bounce in Pune

The parties are required to carry with them three important documents these are as:

1. Copy of the Bounced Cheque
2. Memo presented by the bank
3. A copy of the demand notice
4. An affidavit 

These are the three documents that the parties must carry with them for sending a legal notice to the Drawer for the non-payment of the money secured by way of cheque in Pune. 

What is the punishment for a Cheque Bounce in Pune?

Bouncing of the cheque is a criminal complaint that attracts a penalty of two times the amount of the cheque and imprisonment for three or more years. In the case of a Company, the head of the department or the directors of the Company will be made personally liable for the offence. 

Frequently Asked Questions (FAQs)

Q1: What is the time limit for sending a Legal Notice for Cheque Bounce in Pune?

A: Usually, the time limit to serve a legal notice after a cheque bounce is 30 days.

Q2: Can the Payee bring a criminal action against the Drawer?

A: Yes, a Payee can bring legal action if the Drawer is unable to clear the funds even after serving the legal notice.

Q3: Can a Lawyer send a Legal Notice for a Cheque Bounce in Pune?

A: Yes, it is always advised to send the legal notice for Cheque Bounce in Pune to a Lawyer.

Q4: Can a Payee send a Legal Notice for Bounce of an E-Cheque?

A: Yes, definitely an E-Cheque stands on the same pedestal as that of a normal cheque.

Q5: Which court has the jurisdiction to entertain the case of a cheque bounce?

A: The jurisdiction lies with the court where the Payee’s or Drawer’s bank is situated.

Q6: Can it be possible to transfer the cases related to Cheque Bounce in Pune?

A: Yes, even out of Pune, matters related to Cheque Bounce can be transferred.

Q7: What is the timeframe for sending a Legal Notice for Cheque Bounce in Pune?

Ans: Typically, the time limit to serve a legal notice after a cheque bounce in Pune is 30 days.

Q8: Can the Payee initiate criminal proceedings against the Drawer in Pune?

Ans: Yes, the Payee can pursue legal action if the Drawer fails to settle the funds even after receiving the legal notice in Pune.

Q9: Is it permissible for a Lawyer to dispatch a Legal Notice for a Cheque Bounce in Pune?

Ans: Yes, it is advisable to engage a Lawyer to send the legal notice for a Cheque Bounce in Pune.

Q10: Can a Payee issue a Legal Notice for the bounce of an E-Cheque in Pune?

Ans: Yes, sending a Legal Notice for the bounce of an E-Cheque is valid in Pune, as an E-Cheque holds the same legal standing as a traditional cheque.

Q11: Which court holds jurisdiction to handle cases of cheque bounce in Pune?

Ans: The court with jurisdiction over cases of cheque bounce in Pune is typically the court where the bank of either the Payee or the Drawer is situated.

Q12: Is it possible to transfer cases related to Cheque Bounce out of Pune?

Ans: Yes, matters related to Cheque Bounce can be transferred out of Pune to other jurisdictions if necessary.

Q13: Are there any specific legal procedures for sending a Legal Notice for Cheque Bounce in Pune?

Ans: Yes, it's important to follow the legal procedures and format specified for sending a Legal Notice for Cheque Bounce in Pune to ensure its validity.

Q14: Can mediation be considered as an alternative for resolving Cheque Bounce cases in Pune?

Ans: Yes, mediation can be explored as an alternative dispute resolution method in Cheque Bounce cases in Pune if both parties are willing to participate.

Q15: What are the potential consequences of ignoring a Legal Notice for Cheque Bounce in Pune?

Ans: Ignoring a Legal Notice for Cheque Bounce in Pune may lead to further legal action, including civil and criminal proceedings, against the Drawer.