The cheque is known as a bounced cheque when the payee presents a check to any commercial bank to complete a payment, but the check is canceled due to the bank's refusal and displays a message of insufficient funds. Cheque bounce events can occur for a variety of causes. In particular, when a cheque bounces due to insufficient funds in the bank account of the cheque drawer, this constitutes a violation of the law on negotiable instruments.
The given check should be rejected by the bank, and the transaction should be stopped. A supporting invoice or return notice stating the reason for payment failure in this case, an insufficient bank balance will be issued by the processing bank. Now that the check has bounced, the payee has the right to submit a formal notice requesting payment in full from the drawer. If there are any applicable Cheque Bounce Fees, we must pay them.
Actions to be taken:
In the event that no restitution is made within 15 days after receiving a notice that a check has bounced, the payee may continue to file a civil lawsuit. A claim against the drawer must be made in accordance with Section 138. (Negotiable Instruments law). We have covered the jurisdiction of the magistrate that is required for filing a check bounce suit in the section that follows. The payee must present a complaint to the magistrate in one of the following locations from a list of options:
the location where the check was first drawn
where the drawer's check was presented to the bank for payment
The address where the payment was supposed to arrive
the location where the check was returned unpaid
where the demand notice was delivered by the payee
While filing a complaint about a bounced check, a Metropolitan Magistrate must be present if the incident occurred in a metro area. When a check bounces involving a different city, the court magistrate fills an equivalent role.
The best response to a legal check bounce notice does not follow a predetermined structure. Nonetheless, the following subjects must be discussed in all seriousness:
The payee's legal counsel should get the response.
Details must be presented in full, including the time the issue first arose, the amount of the check return invoice, etc.
According to the payee's notice, the allegation shall not be admitted.
Must contain information about the transaction, such as a name and address.
a concise statement in support of your denial of all charges
If the bounced checks were mentioned in the registered sale deed, there is no issue; just file a declaratory action ( your lawyer will guide you). If not, file a complaint alleging a bounced check, and you will be reimbursed for your money but not the property.
Many business checks are reportedly rejected by the bank that processes them because of technical issues such mismatched signatures, overwriting, or differences between amounts expressed in words and figures. Cheques that have physical deterioration are also thrown away. First instructions from the payee to the drawer are to reissue a new check with the errors fixed.
The payee may occasionally want to choose additional payment methods. The payee has the right to enlist the aid of legal counsel if the defaulter objects to the terms set forth by the latter. A payee may issue a Cheque Bounce Notice against the drawer in accordance with Section 138 of the Negotiable Instruments Act.
This rule is applied when a payment is stopped because there is not enough money in the account. If a technical issue rather than an underlying financial problem is the cause of the disruption, the payee must ask the drawer to resubmit the check.
In situations where a draft with bounce is involved, attorneys must be retained. In India, this issue with dishonored checks is seen as a crime.
Property Lawyers in Delhi can be appointed if the cause of action has occurred in Delhi. Moreover, if the cause of action has occurred in Bangalore then Cheque Bounce Lawyers in Bangalore can be appointed. Likewise, Criminal Lawyer in Lucknow can also be consulted.
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