04 April 2018 04:10PM
Dishonor of cheque or cheque bounce happens when a cheque that is introduced in the bank is returned unpaid. It could happen because of insufficient funds in the bank account of the individual who has issued the cheque or the signature on the cheque is not matching with the original signature of that individual. You can go on to the person who has issued such a cheque under different provisions of law. Dishonor of cheque is a criminal offense under section 138 of the Negotiable Instruments Act.
In today’s world, we enter into many agreements and contracts with individual or firm that litigation has become very common. Some individuals file suit straightaway and some opt to serve notice to the opponent. Serving of notice is made according to the law. There is certain legislation which makes it compulsory to serve notice to the opponent showing the intent of the suit. For example- The Transfer of Property Act, Indian Contract Act, Industrial DIspute Act etc.
Now, before in going detail, we can take a look at the meaning of Notice and its objectives-
What is Notice?
The word notice is self-defined and well known. There is no precise and legal meaning of this word. It simply means intimation, information, knowledge, attention etc. The word “notice” denotes merely intimation to the party concerned of a particular fact. Notice may take several forms. It must, to be sufficient, be in writing and must intimate quite clearly that the award has been made and signed.
Object of Notice
The basic object of the serving of notice is to show the intention behind the filing of the suit. It is given to settle the point of dispute between parties without going to the court of law. The object of the notice is to give opposite party an opportunity to reconsider his legal position and to make amends or afford restitution without recourse to a court of law. The Supreme Court, in the landmark case, stated that “The object of the section is the advancement of justice and the securing of public good by avoidance of unnecessary litigation.” The notice is deemed to be served only when it is received or refused by the addressee and not simply by posting the notice.
Nature and Scope of Notice
Laws regulating notice are of procedural nature, therefore, requires more vigilance and care while drafting a notice. Ignorance of the law is no reason especially procedural law where a subject is regulated with some procedures.
Cases in which legal notice can be served
Mostly a notice can be served to the opposite party in case of property dispute, dishonor of cheque, family dispute, consumer disputes and labor matters.
Section 80 of Civil Procedural Code 1908 states that if a suit is to be filed against the public officer or the state authority or the state or central government, a notice is to be served to rectify or correct their breach or misconduct within 2 months.
Legal Notice in case of Dishonor of Cheque-
Whenever your Cheque got bounced the first step that must be taken in such a case is to send a demand letter or legal notice to the person who has issued the cheque. the payee or the holder in due course of the cheque, as the case may be, should make a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid. The main purpose of sending legal notice is to inform the drawer that the legal action can be initiated against him under the Negotiable Instruments Act in case the amount is not paid within a stipulated time period of 15 days. The following information should be stated clearly in the demand notice:
• A declaration that the cheque was presented within its period of validity;
• Declaration of debt or legally enforceable liability;
• Information about dishonor of cheque as given by the bank, and
• Demanding the issuer to pay the amount due within 15 days of getting such notice.
If the drawer has not replied to the demand notice within a period of 15 days from the date of the delivery of the demand letter or has refused to pay the amount, then the next option available in such a case is to file a complaint in court within a stipulated time period of 30 days.
What should be done after receiving a notice?
It is not mandatory to reply a legal notice, yet it is advisable to reply appropriately to the notice bearing in mind the laws applicable. No reply to a notice can add preferred standpoint to the sender in a court of law. The reply must be given within the stipulated time. In case if you have received a legal notice do not panic, simply follow the following procedures-
Step 1: Read the substance of the notice carefully in the context of the agreement, executed between the parties. If you feel that the notice is not precise or can be challenged and require legitimate help, approach a topmost cheque bounce lawyer.
Step 2: Check the limits within which the reply is to be given. Once a period confine is given for answering the notice, endeavor to comply with the time stipulated.
Step 3: Keep a record of the time of notice within which you got the notice. A good record keeping will be a benefit regardless of whether the opposite party files a suit against you.
Step 4: Check the contractual obligations which the sender of the notice needs to fulfill and which it lacks. Breach of contractual obligations will be a good defense for the receiver. Counterclaim for damage due to breach and compliance of obligation can be done.
Legal notices are an important part of adjudication process providing fair and reasonable chance to settle the disputed points and to intimate the parties of the legal action. It all depends on how a notice is drafted, whether the focus of lawyer is to settle the points of a dispute through arbitration /conciliation or to escalate tension by approaching the court.
For further legal query relating to cheque bounceor if you are in need of topmost cheque bounce attorney then you can reach out to Legalresolved which is an online platform where you can find solutions to your legal queries, contact lawyers for legal aid, and manage appointments with the best and the top cheque bounce lawyers in your city.
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