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When the cheque bounces due to insufficient funds and is returned by the bank, the payee should send a legal notice to the drawer of the cheque asking to make the payment. Cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 in India.
A cheque bounce notice is essentially a legal notice and must be sent within the limitation period of 30 days from the date of the cheque (s) being bounced/dishonoured. A legal notice should be drafted and signed by a lawyer. Cheque bounce notice is the first step towards litigation.
Jul 12, 2024 · A cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 (“Act”) punishable with a fine which can extend to twice the amount of the cheque or imprisonment for a term not more than two years or both.
A cheque bounces due to several reasons like insufficient account balance, torn cheque, overwriting, expired validity of cheque etc. Read Cheque bounce charges, penalty, procedure and notice here.
Mar 11, 2023 · A cheque bounce notice lays the foundation of a Court case under Section 138 of the Negotiable Instruments Act, 1881. Explore the rules, format, and frequently asked questions around the legal notice for cheque bounce. Published on March 11, 2023By Ridhi.
A cheque bounce notice is a serious notification sent to the payer of the cheque that his issued cheque was dishonored for reasons mentioned therein and that he must arrange an alternative way of payment within a reasonable time or else the payee has every right to move court under section 138 of the negotiable instruments act.
May 7, 2024 · A cheque bounce notice is a formal written demand sent by the payee to the issuer (drawer) of a bounced cheque. It is the first step towards initiating legal action under Section 138 of the Negotiable Instruments Act (NI Act) to recover the dishonored cheque amount.
May 17, 2020 · Cheque Bounce: Concept, Rules, Notice, Procedure & Penalty | Overview. Introduction; Concept of Cheque bounce; What is a Demand Notice? Rule; Landmark Judgements. (In Brief) Penalty; Procedure and recourses in cases of Cheque Bounce; Criminal Proceedings; Civil Proceedings; Recent Amendments; Conclusion
Jul 1, 2024 · Cheque bounce notice is a firm and serious intimation to the cheque issuer that the cheque beneficiary will proceed with legal action if payment for the cheque is not made immediately.
Aug 8, 2023 · The provision of the Cheque Bounce Notice under Section 138 of the Negotiable Instruments Act plays a vital role in resolving disputes arising from dishonoured cheques. It emphasises the importance of fulfilling financial obligations and maintaining trust in commercial transactions.
