A cheque throws a major light on the financial system around the world. It is regarded as an important document to transact the required amount to a company, government, or any person. A cheque can be subject to a negotiable document, which is used to transfer money in a tangible form to make an inter-account transfer. Likewise, when someone chooses to transact the amount to the other person through the cheque, there can be a chance of cheque bounces.
A cheque bounce is a term that is usually used for the unsuccessful attempt of money transferring due to a dispensed cheque because of various reasons. There are several situations where a person who issues a cheque, actually, is not aware of the reason for the dishonored cheque. Below mentioned are some crucial reasons for the cheque bounce and one should be careful about:-
Insufficient funds: Cheque can be dishonored by the bank when the amount mentioned by the issuer is more than the funds available in his account, which can lead to a fine imposed on both issuer and receiver, from the bank side. Furthermore, the recipient of the check has the right to file a lawsuit against the issuer for non-payment and cheque dishonor. As a result, it is recommended that when issuing a check, you remain alert and cautious and that the account balance is adequate, Cheque Bounce Lawyers In Delhi.
The mismatch of the signature: This is an often most common reason that receiver faces a cheque bounce issue because the signature which is recorded by the bank doesn’t meet the one signed on the cheque.
Damaged cheque: when you receive a cheque from an issuer, it is to make sure that you should not fold, otherwise folding it may erase or blemish the sign or necessary details.
Wrong details entered: It’s to make sure that when you fill up the details in a cheque, always be careful with date, spelling, and numeric figures, otherwise it may lead to a higher chance of cheque bounce.
Overwriting of a cheque: double writing or rectification shouldn’t be done on a cheque, such a cheque is not acceptable by the bank and it would get dishonored immediately.
The question that arises here is how to deal with cases similar to the above and what is the necessary law or an act for it?
The cases regarding the cheque bounce are dealt with specifically under section 138 of the Negotiable Instrument Act. Before 1988 then cases of the same matter were dealt with necessary provisions considering it as a civil wrong, but after the amendment came it was treated as a criminal offense, Best Criminal Lawyer In Delhi.
Section 138 of the Negotiable Instrument Act talks about the dishonor of the cheque for the insufficiency of funds in an issuer’s bank account, given for any debt or other liability which should be legally enforceable, and if the bank returns the cheque to the receiver with the attached memo that states about the dishonor of the cheque, then such issuer should be considered to be committed a criminal offense punishable for prison up to two years or fine of double the amount mentioned in that cheque, or both.
This section only applies if fulfills the below conditions:
The cheque should be presented to a bank within six months from the date mentioned in the cheque or whatever the validity of that cheque is.
The receiver should demand the mentioned amount from the cheque issuer by sending him a notice within 30 days after the receiver gets the cheque memo from the bank about the dishonor of the cheque.
If an issuer fails to pay the money within 15 days of said notice sent by the cheque receiver.
Then the cheque receiver has the right to file a case against the issuer under section 138 of the Negotiable Instrument Act. Within the three months of the date from the dishonor of the cheque by appointing a lawyer who deals with the matter of cheque bounce. Lead India is a team of experienced lawyers, who deal with such cases and believe in justice getting delivered in time.
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