Notice for Cheque Bounce
Why Choose Dastawezz ?
A cheque bounce is when an unpaid cheque is returned back by the bank, also known as dishonour of cheque. Cheque bounce can eventuate because of a lot of reasons, for instance, due to insufficiency of funds in the account of the ‘drawer’ and many other reasons. The bank always issues a cheque return memo with the necessary reasons for non- payment as soon as the cheque gets bounced. In India a cheque bounce is a criminal offence stipulated under Section- 138 of the Negotiable Instruments Act, 1881. However, in case of a cheque bounce, the aggrieved party can file a criminal as well as a civil suit against the accused. Sending a Legal Notice to the opposite side, is the first step to be taken.
The contents of the Cheque Bounce Notice are as follows:
- The name and address of the drawer of the cheque and the payee.
- Information of the cheque presented to the bank for payment including the details of the cheque number, date and
- Date of return of cheque and Reason for cheque bounce.
- Request for the immediate arrangement of the payment of the amount.
- Reference of Section 138 of the Negotiable Instruments Act.
A well drafted legal notice on the letterhead of the advocate, must be sent to the payee using Email or through registered post.
ADVANTAGES / FEATURES
- It helps to initiate criminal or civil proceedings against a party who has defaulted you.
- It helps to recover money which would have otherwise been lost, from the defaulting party.
- After the whole trial process, If found guilty, the accused can be punished with a monetary penalty which may be double of the amount of cheque or imprisonment up to 2 years or both.
- Original Cheque
- Photocopies of the cheque returned by the bank, memo.
- Copy of the legal notice for demand sent to the drawer and the acknowledgment slips/ receipts
- Original Postal Receipt and Copy of Acknowledgement of due service
- Proof of lawful debt or liability
- Authorisation letter / Power of Attorney