Ni Act Cheque Bounce Notice

If someone writes a cheque in someone else's name and that cheque is returned when it is presented to a bank for withdrawal, it is legally known as cheque dishonor or, more generally, a cheque bounce. A cheque that bounces due to inadequate funds is subject to criminal provisions under Section 138 of the Negotiable Instruments (NI) Act of 1881.

A violation of Section 138 of the NI Act occurs when a cheque bounces because there is not enough money in the drawer's account. The Legal notice under section 138 of the NI Act, however, is one of the most crucial procedures to be followed in accordance with the legal regulation. A properly served legal notice is a requirement for the maintainability of a case of cheque bounce. A legal notice under Section 138 of the NI Act should be written such that all relevant information is clear at a glance since it is crucial for establishing the basis of the legal proceeding before the magistrate.

Situations Leading to Bounce of Cheque

  • The bank will reject and return the cheque to the payee with a memo declaring that there are insufficient funds to fulfil the cheque amount if there is not enough money in the drawer's account to cover the amount of the cheque.
  • The cheque must be produced for payment within the first three months of the drawer issuing it. If the cheque is not submitted to the bank within three months, it becomes invalid. A bank will bounce a cheque that has expired. 
  • The cheque bounces due to overwriting if the drawer's signature, the amount of the cheque, or any additional information has been altered.
  • A cheque will bounce if it is scratched or otherwise altered, the facts are obscured, or there are spots or marks on it.
  • The cheque will bounce if the drawer's signature is illegible, missing, or does not correspond to the one on file with the bank.
  • The cheque will bounce if the amount written on it in words and numbers do not match.

Cheque Bounce: Re-submission of Cheque

When a cheque bounces owing to overwriting, an incorrect signature, an inconsistency between the amount written in words and figures, or a damaged cheque, the payee may request that the drawer produce another cheque to make up for the error. The payee may file a civil lawsuit against the drawer to recover the amount of the due cheque, not just the cost of the bounced cheque if the drawer refuses to submit another cheque.

Issuing the Cheque Bounce Notice

  • The first step after a cheque bounce owing to inadequate funds is to demand payment by sending a written notice of the cheque bounce in accordance with the NI Act. 
  • Within 30 days of receiving notice from the bank and the bounced cheque, the payee may send a notice saying that the bank is unable to pay the amount on the cheque because there is not enough money. 
  • The payee must allow the drawer a 15-day period of grace after sending the notice that the cheque was returned unpaid in order for the drawer to make payment. 
  • The payee may file a lawsuit against the drawer within 30 days following the expiration of the 15-day grace period if the drawer still does not reimburse the cheque's amount.
  • Exception: If the cheque was written as a gift, contribution, or any other obligation that may not be legally enforceable, no notice of a bounced cheque can be sent. To be a violation of the Act, the cheque must be written to satisfy a legally enforceable obligation or debt.

You will need the help of a lawyer to draft an effective legal notice for cheque bounce and send it to the person who owes you the money because a Defective legal notice in 138 NI act can result in further risk of dismissing your case in the court If you do not get any response to your legal notice then you can file 138 cases if accused not received legal notice.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free 

legal advice online, one can also ask a legal question to the experts online free through Lead India.

SOURCE:-

Visit us: https://www.leadindia.law

Call Us: +91–8800788535

Email: care@leadindia.law

YouTube: https://www.youtube.com/c/LeadIndiaLawAssociates

Facebook: https://www.facebook.com/leadindialaw

LinkedIn: https://www.linkedin.com/company/76353439

Twitter: https://twitter.com/leadindialaw

Pinterest: https://in.pinterest.com/lawleadindia

Instagram:https://www.instagram.com/leadindialawofficial

Legal notice under section 138, 138 cases if accused not received legal notice, Defective legal notice in 138 NI act

Location: Kanchanjunga Building, Kanchanjunga Building, Barakhamba Rd, Fire Brigade Lane, Barakhamba, New Delhi, Delhi 110001, India

Comments

Post a Comment

Popular posts from this blog

I Want The Best Real Estate Lawyer Or Attorney Near Me

Image
Having an experienced and qualified real estate attorney will make all the difference when navigating the complex realm of real estate transactions. Having the correct legal advisor on your side may guarantee that your interests are safeguarded and that the process goes well, whether you're purchasing your first house, selling a property, or dealing with real estate disputes. Significance of Real Estate Lawyer or Attorney The area of real estate law is intricate and dynamic. A licensed real estate lawyer or attorney has the legal expertise required to negotiate the complex laws and rules governing property transactions. To advance your interests, they can spot possible problems and offer solutions. Numerous contracts and legal papers are used in real estate transactions. These documents can be examined by an experienced attorney to make sure they are just and serve your interests. Additionally, they can bargain on your behalf to obtain advantageous terms. A real estate lawyer is ...
Read more

Overview Of Intellectual Property Laws

Image
 Due to growing globalization and economic liberalization around the world, the 21st century witnessed the growth of "Intellectual Capital" as a significant financial source of international trade among nations. Whether in the form of new statutes or judicial announcements, rights pertaining to intellectual property have evolved to be a vital component of India's business community. India's acceptance of the WTO agreement has paved the door for TRIPS (Trade Related Aspects of Intellectual Property Rights) compliance. Intellectual Property Laws: Meaning and Purpose The legal rights granted to people or entities who create and possess intellectual property are known as intellectual property rights or IPR. Intellectual property covers works of art, literary and artistic creations, as well as commercially employed names, symbols, designs, and many more. By encouraging people and businesses to make investments in research and development, efficient IPR policie...
Read more

What Kind Of Cases Does A Litigation Lawyer Handle?

Image
A litigation attorney will also draft legal documentation. A litigation attorney will handle court-required documents such as pleadings, motions, and briefs on behalf of their client. Their main responsibility is to represent their clients in court and present their case to jurors and judges. They often engage in settlement talks with the opposing attorneys to settle issues out of court. Litigation lawyers usually have a case management plan that fits the client's aims and objectives to accomplish this. A litigation attorney makes decisions on how to present evidence, which witnesses to call, and what legal arguments to make. In general, a litigation lawyer counsels clients on all facets of their legal matters. They should be able to respond to questions about the case's advantages and disadvantages, possible outcomes, and the most effective ways to advance their clients' legal objectives. What kind of cases does a litigation lawyer handle? Litigation lawyers can handle a b...
Read more