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Writer's picturethelila500
Jan 27, 20233 min read

What Is The Process To Send A Check Bounce Notice To The Insurance Company?

When there isn't enough money in the account to satisfy the debt, a situation known as a cheque bounce occurs. The money needs to be retrieved right away. A letter asking money is first given to the drawer before pursuing legal action. On the letter, a quick resolution is occasionally reached.


Check bounce is a serious offense under the Negotiable Instruments Act that is punishable by both a jail term and a fine. The drawer of the check must present the check within 30 days after the day it was dishonored in order to protect his rights under the Negotiable Instruments Act.


  • Cheques that bounce or are not paid are a serious misdemeanor in India and are subject to fines or imprisonment under Section 138 of the Negotiable Instruments Act.

A cheque is a "bill of exchange" that can be cashed immediately. The person who writes the check is known as the "drawer," while the person to whom it is written is known as the "drawee." Almost all transactions involve the use of checks, including loan repayment, wage payment, payment of bills and fees, etc. Banks handle and pass the vast majority of checks every day.

The purpose of issuing checks is to obtain documentation of payment However, a large number of people still regard checks as a secure method of payment. However, it is typically preferable to include crossed "Account Payee Only" checks in order to prevent misuse.


How to Send Cheque Bounce Notice:


A Cheque bounce notice may be produced using our platform. After the drafting is finished, it must be printed on plain paper or on the company letterhead before being handed over to the person who will be cashing the check. A check bounce notice must include the following:

  • Name of the check's recipient,

  • The check's issuer's name and address,

  • The check's return deadline,

  • Reasons for a returned check,

  • The check issuer has been asked for immediate alternative payment, and the check has been issued in accordance with Section 138 of the Negotiable Instruments Act.

A notification of check bounce is sent by registered mail so that the issue date of the notice can be accurately recorded. The beneficiary of the check may keep one copy of the letter, while the other copy is transmitted by registered mail to the check issuer.


What Factors Must Be Taken Into Account for a Cheque Bounce Notice to Be Valid? :

  • Information on the check presentation,

  • The reason for non-realization of payment,

  • Information regarding the request made to the check issuer to make payment on an immediate basis must all be in accordance with Section 138 of the Negotiable Instruments Act.

  • Within 30 days of the check being returned to the person who issued it, a notice must be delivered.

The first prerequisite is that the check must go toward the obligation. The beneficiary must produce the check within six months of the expiration date. The bank must have returned the check since there wasn't enough money.


The payee raises demand by providing written notice of a check bounce within 30 days of receiving notification from the bank that funds are insufficient. After obtaining written notice that a check bounced, the drawer has 15 days to pay the specified amount. One month after the cause of action first materialized, legal action is initiated.


After receiving the complaint, an affidavit, and any relevant paper trial, the court will issue a summons and schedule an appearance. If found guilty, the defaulter faces a financial fine that could be twice the amount of the check, a sentence that might be up to two years in jail, or even both. For repeated instances of bounced checks, the bank also has the power to terminate the ability to use a checkbook and close the account.


The drawer has not broken any laws if they settle the remaining balance on the check within 15 days of the day they received the notice. If not, the payee has one month starting on the day the 15-day window for filing a complaint in the jurisdictional magistrate's court has passed.


If the cause of action has arisen in Jaipur then Cheque Bounce Lawyers Jaipur can be consulted. Likewise, you can also search for Cheque Bounce Lawyers Noida if the cause of action has arisen in Noida. Cheque Bounce Lawyers Chandigarh can also be appointed if the cause of action has arisen in Chandigarh.


We provide a variety of knowledge and legal services at Lead India. You can ask a legal question here. To get the greatest guidance in this situation, talk to a lawyer. Our team of attorneys understands the ins and outs of the law which will help you in making informed decisions. You can also get free legal advice online.


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