31 May 2018 01:02PM
l Signature is not matching
l There is overwriting in the cheque
l Cheque was introduced after slip by of three months, i.e. after the cheque has lapsed
l Account was closed
l Deficient finances in the account
l Installment halted by the account holder
l Opening balance insufficient
l Dissimilarity in the words and figures said on the cheque
l In the event that the cheque is issued by an organization, the same does not hold up under the seal of the organization
l mismatch in account number
l In the case of the joint account where both signature is required, just a single sign is there
l Demise of the client
l Bankruptcy of the client
l insanity of the client
l Crossed cheque
l At the point when a cheque is issued against the principles of trust
l alteration in cheque
l Uncertainty in the validity of the cheque
l Displayed at the wrong branch
l crossing limit of overdraft (OD)
Legal provision for cheque bounce in India
The lawful arrangement with respect to bouncing of the cheque has been specified under Section 138 of the Negotiable Instruments Act, 1881. This Act says that bouncing of a cheque is a criminal offense in India and the same is culpable with a imprisonment of two years or with a fine proportional to double the measure of cheque, or with both.
Legal action that can be taken
1. The first thing which needs to be done on being informed about the bouncing of the cheque is to obtain the ‘Cheque Return Memo’ (which states reasons for non-payment) along with the bounced cheque from the bank.
2. Notice of demand- section 138 of the Negotiable Instruments Act, 1881 gives that before continuing to legitimate activity, you are required to send a demand notice to the drawer within 30 days of accepting the "Cheque Return Memo", giving him an opportunity, to pay you within 15 days of getting such Demand Notice. The Notice of Demand can be sent by the complainant himself/herself but it is advisable that they should get the approval of a Cheque Bounce Lawyer before communicating the same to the Concerned Party.
3. Criminal complaint-If you don’t receive the payment within 15 days of sending the Demand Notice, you can file a criminal complaint, under Section 138, within 30 days from the date of expiry of the 15 day notice period.
Civil action-The payee may likewise start a recovery methodology through a recovery suit for debt recovery in a civil court inside the pertinent territory, aside from prosecuting the drawer for a criminal offense
Things to be strictly avoided in case of cheque bounce
2. Acquiring a change in the name of the payee.
3. Getting an adjustment in the dates of the cheque.
4. making some other kind of improvement to the cheque.
18 July 2018 04 51 PM
A cheque/cheque “bounces” when there are not enough funds in the originating account to honor the request to cash it. A cheque typically involves three parties, (1) the drawer who draws the cheque, (2) the payee, to whose order the cheque is made out, and (3) the drawee or payer bank, th
16 July 2018 03 40 PM
WHAT IS A BOUNCED CHEQUE? When a check is refused by a bank and returned to the person due to insufficient funds in the bank account of the person who wrote, it is called a bounced cheque. A bounced cheque is a watch that can't be handled in light of the fact that the record holder has non-
31 May 2018 01 02 PM
What is cheque bounce? A cheque is said to be disrespected or bounced when it is displayed for installment to a bank however it isn't paid as a result of some reason or the other. The accompanying are some of the reasons why a cheque is generally bounced :
20 April 2018 11 24 AM
As per its legal definitions under Section 6 of the Negotiable Instruments Act, 1881, a cheque is a “bill of exchange drawn on a specified banker and not expressed to be payable otherwise on demand and it includes the electronic image of the truncated cheque and a cheque in the electronic form
11 April 2018 10 30 AM
A ‘cheque bounce' is the common term used to refer to the dishonour of a cheque. Cheque bounce/ dishonour of cheque happens when the bank fails to pay the cheque amount either due to inadequate funds in the bank account of the cheque drawer or when the cheque amount exceeds the amount that can
04 April 2018 04 10 PM
A Cheque has been defined in section 73 (1) of Bills of Exchange Act 1949 as a bill of exchange drawn on a specified banker and not to be expressed to be payable otherwise than on demand. Legally, the party who has issued the cheque is entitled as 'drawer' and the party in whose favor the cheque is
09 January 2018 05 15 PM
The main procedure of bringing an issue into the court is to serve a notice upon the entity or individual against whom you wish to take legal action. And the intimation sent is known as a legal notice.
03 January 2018 03 37 PM
Metropolitan cities like Delhi is becoming more commercialized as the time passes away. Accordingly, the quantum of forged companies are also at rising stage. Initially, they incorporate a company following all the guidelines of the Company laws but subsequently at the timing of the payment of salar
09 December 2017 01 48 PM
At whatever point, the Cheque is restored, in Cheque bounce cases the cure lies under Section 138 of Indian Negotiable Instruments Act. You are required to issue a statutory notice to the individual who has drawn the Cheque at a time of impediment endorsed. Also, for cheque bounce issue on the off c
28 November 2017 10 08 AM
A man may confront criminal procedures if a cheque issued by him gets disrespected on the ground that his mark does not coordinate the example signature accessible with the bank, the Supreme Court has said.
23 November 2017 01 51 PM
Cheques are utilized as a part of all exchanges, for example, re-installment of advance, installment of pay, charges, expenses, and so on. A cheque is a debatable instrument. Crossed and account payee checks are not debatable by any individual other than the payee. The cheques must be kept into the
22 November 2017 11 49 AM
Once the bank has restored the check, i.e. the cheque has bounced, you are required to send a letter (request see) inside 30 days of such bobbing to the gathering who composed the cheque (the drawer) debilitating to start procedures under the Negotiable Instruments Act on the off chance that the sum
01 November 2017 12 46 PM
In the event that you have a Cheque issued by an indebted person that has bounced or has been disrespected, or somebody has issued a cheque bounce case against you, or you have gotten court summons for a 138 NI (Negotiable Instruments Act) objection against you, utilize Legal resolved to locate a fi
28 September 2017 12 14 PM
Legal Resolved enable you to interface with Top Cheque Bounce Lawyers in Bangalore for lawful interview, drafting and common or criminal prosecution. Legal advisors enrolled on the Legal Resolved platform practice crosswise over locale courts, high courts, Supreme Court and different tribunals. Pick
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