BOUNCED CHEQUE LEGAL ACTION
Cheque bounce cases in the recent times has been a rise in their numbers When a cheque is bounced in a bank, the bank sends a Cheque Return Memo or the cheque bounce memo to the account holder which mentions the reason for which the cheque bounced. If the cheque bounced due to some minute error or for reasons beyond the control of cheque issuer, a simple notification conveying the cheque bounce can be sent.
However, if the cheque bounced due to some deliberate action by the issuer, or on any grounds mentioned under 138 section for cheque bounce, you can take the following legal actions against cheque bounce in India:
- The cheque can be submitted again within 3 months if you have informed the issued and he has assured you that the cheque will be honoured this time.
- Upon receiving the cheque return memo from your bank, you can send a legal notice to the issuer within 30 days from the date of receiving the cheque return memo. The legal notice for cheque bounce must contain all the relevant details regarding the amount payable, the date on which the cheque was issued, the date on which the cheque was deposited in the bank and the date on which the cheque was returned.
- If the issuer does not make the payment within 15 days of receiving the legal notice for cheque bounce, you can file a cheque bounce case under Section 138. The cheque bounce case can be filed in Magistrate’s Court within 30 days after the 15 days notice period expires.
- If a cheque bounce case is not filed within the said period, the court may considered it as a false cheque bounce case and refuse to admit the case unless a justifiable and valid reason is provided.
- The cheque bounce complaint is filed with an affidavit and relevant documents associated with cheque bounce, like any sale-purchase contract, cheque receipt, cheque return memo, the conversation between you and issuer, etc.
- Once the complaint is filed in court, the Magistrate issues summons for the issuer to appear before the court.
- If the issuer is found guilty in a cheque bounce case, he would be liable for punishment under Section 138.
- A civil suit or summary suit for recovery of the pending amount can also be filed. A civil or summary suit can also be filed to recover the cost incurred to recover the amount, interest on the amount.
Team Legal has expert lawyers for Cheque Bounce matters. Our dedicated lawyers handle bounced cheque matter in Noida, Delhi & Gurgaon. For any queries and cases related with bounced cheque matters kindly call Team Legal on 0120-413-0865