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 ...