A cheque bounceis among the most common defaults that have plagued the financial world. It can lead to a lot of humiliation. Given below is a step-by-step guide for the legal recourse in case of any check bounce incident.
It is considered to be a cheque bounce if a bank returns an unpaid cheque. It is also referred to as the dishonor of a cheque. A cheque bounce can eventuate due to a lot of reasons. For example, it can happen due to insufficient funds in an account apart from various other reasons. The bank would provide a cheque return memo having the necessary reasons for the bounce.
Various Reasons ForCheque Bounce
A check bounce can happen if the signature on a cheque and the signature on the official document of the bank do not match. It can also happen in case of overwriting on the cheque.
If the cheque is presented post the expiry of its validity, it can get dishonored. A cheque can get dishonored if the bank account has been closed by either the account holder or the bank. It can happen if the payment husband stopped by the account holder for any reason. It can also happen in case of any alteration in the cheque.
Cheque Bounce Litigation
A cheque bounce is considered a criminal offense. Therefore, the aggrieved can file either a civil or criminal suit against the accused. The first step in this regard happens to be the sending of demand notice. It is also considered a demand notice or letter sent to the drawer within the stipulated time from the date of the cheque bounce. This legal notice must mandatorily mention the amount from the drawer. Also, if the amount is not cleared within the stipulated period, corresponding legal steps would be initiated against the drawer.
There is no fixed or established format for such an intimation. Irrelevant and demanding notice is more than enough. However, the notice must explicitly highlight the objective and the warning for legal consequences. In addition, it is important to preserve the proof of delivery of such a notice like the online status or postal receipt.
The drawee can send such a notice. However, the best is to take advice from a cheque bounce case lawyer before drafting. It ensures that all legal aspects are covered and has a fearing impact on the drawer.
Key Points In The Demand Notice
The instance of the default and breach of trust must be provided. The first thing that must be stated is that the cheque was presented within the stipulated time. Next, the debt statement along with the drawer’s legal liability must be mentioned. Finally, the information provided by the bank related to cheque bounce must be included along with a copy of the cheque. Above all, it must be claimed that payment along with the due interest will have to be paid within a given time frame upon receiving the notice.
If you need a cheque bounce case lawyer, we can help. Please drop us a note or give us a call for an understanding of your case.
Karuna Sharma 