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Introduction
Cheque dishonour is not intentional, deliberate or unintentional but a legal complication makes the life of these people a maze with a lot of complications. In such cases it is important to understand the importance of legal notices which are the first step and the main parts of the legal process to collect all the evidence and prove my legal rights.
Fighting and / or requests need to be studied well and compliance with the laws of the country, the rules of the court and the remedies available to the wrongful parties is very important. The struggle between the deliveries and litigation reaches thrilling heights with the effectiveness of legal notifications coming up as a ray of hope on the stormy sea, saving the boats from the turbulent waves and making them able to sail smoothly even while the feat wind whispers the stories left unsolved due to the lack of their resolving.
Developing the expertise to issue legal notices for Indian employers involved in cheque bounce in North Goa requires a sophisticated commission of knowledge as well as an abreast of the prevailing local dynamics and the existing legal framework. Every action demands careful handling, from just following the court's directions to complying exactly to the provisions of the Negotiable Instruments Act, 1881. This Act on the non-negotiable side deals with the undertaking of obligations of an individual and, on the negotiable side, it deals with the nature and character of any instruments involving the issuance of documents and the power to accept or reject.
Concept of Cheque of Bounce
Many factors, such as an inadequate balance, a torn cheque, overwriting on the cheque, and the cheque's expiration date, can cause a cheque to bounce. The penalties related to these cheque bounces and the measures taken to prevent them are covered by the Negotiable Instruments Act of 1881.
Criminal liability may arise against the drawer of a defaulted cheque if the amount dishonoured due to insufficient funds in the drawer's bank account beyond the arrangement with the bank. Mens rea is not required in the event of a cheque bounce, and the drawer is not permitted to utilise it as a defence. Section 138 liability could give rise to a criminal offence of cheating under the IPC's provisions, which would carry penalties.
Who are the Parties to the Cheque?
- Drawer: The individual who writes the cheque, or the "author of the cheque," is referred to as the Drawee. (The debtor may be the drawer.)
- Payee: The individual in whose favor the cheque is drawn, or the person to whom the amount specified in the cheque is payable, is referred to as the Payee. (The creditor may be the payee.)
- Drawee: The bank that the Drawer has an account with and from which the amount on the cheque is to be paid; in other words, the bank that receives the payment instruction is the Drawee.
- Payee's Bank: The bank that the payee deposits the cheque into or has a bank account in where the cheque amount is to be deposited or credited (particularly in the case of a crossed cheque) is referred to as "Payee's Banker."
What is a Cheque Bounce Notice?
A legal notice for dishonoured cheque, commonly referred to as a "cheque bounce notice," is a formal letter sent by the drawer—the person or organisation that issued the bounced cheque—to the payee, or the person or entity to whom the cheque was issued. The notice's objectives are to notify the drawer that the bank has refused to honour the cheque and to demand payment of the amount shown on the returned cheque.
A Cheque Bounce Notice is a formal document that documents the payee's demand for payment. Should the drawer refuse to comply with the demand, it frequently serves as a prelude to filing a lawsuit. To support the payee's position in any ensuing legal actions, it is crucial to draft and send the notification in compliance with the law.
Key Components of Cheque Bounce Notice
- Information about the Cheque: This entails the cheque number, the name of bank on which it is drawn, the date the bank issued the cheque, and the amount written on it.
- Reason for Dishonour: The notice should indicate the reason(s) the bank advanced that led to rejecting the cheque, for example. Inadequate funds, impossibility of account opening, wrong signatures, post dated cheques, and hundreds of other problems are telltale signs.
- Demand for Payment: A notice must explicitly apportion the sums owed and set a date for settlement by when an individual should pay their balances. Often the timeframe for a response is between 15 days and one month after the recall notice was received.
- Consequences of Non-Payment: It could be in the notice that a payment which has to be made earlier needs to be made immediately otherwise legal action will be taken against the drawer.
- Mode of Delivery: The Notice should be sent through registered mail followed by an acknowledgement of receipt as evidence of delivery to ensure that the drawer has received it, as well as to keep the record of delivery.
Legal Provision for Cheque Bounce Cases in North Goa
A legal notice for a bounced cheque is normally sent in accordance with Section 138 of the Negotiable Instruments Act of 1881. According to this clause, if a cheque is dishonoured because there are not enough funds or for any other reason, the holder of the cheque, or payee, must notify the drawer, or issuer, in writing within 30 days of learning about the dishonour from the bank. The notice must state that the payee may file a lawsuit against the drawer if the cheque amount is not paid within 15 days of receipt.
Particulars such as the date of issue and dishonour of the cheque, the amount involved, and the payee's plan to file a lawsuit if the cheque amount is not paid within the allotted time should all be included in the notification. In order to provide proof of delivery, the notice should also be issued via courier or registered mail with acknowledgment. The drawer may be subject to criminal culpability, including jail time or a fine, as specified by the Act, if they disregard the notification.
Penalty
If, within 15 days of receiving the notice that the cheque has bounced, the drawer of the cheque fails to make the payment, they will be subject to legal action under Section 138 of the NI Act. The drawee may then use the verification process to support a case of cheque forging.
The punishment for cheque bounce in North Goa is –
- Imprisonment for up to 1-year
- Fine which may be twice the amount of the cheque or both.
Procedure for Sending a Cheque Bounce Notice in North Goa
Step 1- Legal Advice: it will be good if you ask legal advice from the lawyer who specialises in cases of cheque bounced in North Goa. They might help you in navigating the courts and make your pleading in line with all possible laws in North Goa.
Step 2- Legal Notice Drafting: Your attorney will be entertained with writing a legal notice for you. Considering this, the notice must contain the date and amount of the returned cheque, the cause for it not to go through and reimbursement within a specific range of days (generally 15 to 30 days).
Step 3- Stamp Paper: Notice in India, are written on the stamp paper, that to be suitable to its amount. Once the North Goa lawyer has made the costs clear to you, stamp paper is going to be needed for that notification too.
Step 4- Sending the Notice: For making sure that the advertisement will be received by the city councillor, it can potentially be sent via registered post with acknowledgement receipt in North Goa. Provide a copy of the boarding pass and the receipt from the FastPass machines to the account for your records.
Step 5- Waiting Period: During the waiting period, the recipient is required to reply to the legal notice as agreed within the given time which often varies from 15 to 30 days after the notice has been sent. In case they don't follow the order or dispute your payment request, you are free to file a lawsuit in court against them. Write a few sentences explaining the main idea contained in the given sentence and provide an alternative sentence.
Step 6- Making a Complaint: The applicant is provided with a right to appeal to the court where the notice was sent initially in case of default in paying the due amount or refusal to respond to the no-payment demand. The amount of the return cheque will decide where to apply for this procedure, District court or High Court in North Goa.
Step 7- Court Procedures: Then, the defaulter will subsequently be given a court summons from the North Goa Court, after the presentation of the case. Thus, the matter will then progress in accordance with the law.
