Cheque is a negotiable instrument used in almost all types of transactions such as payment of salary, fees, bills, re-payment of loan or etc. Normally cheques are issued for the reason statutory requirement and for the reason of securing proof of payment. In legal terms, the author of the cheque is called ‘drawer’, a person in whose favor cheque is drawn is called ‘payee’ and the bank who is directed to give the amount is known as ‘drawee’.
A cheque is applicable for payment only for 6 months from the date mentioned. After the period of six months, the cheque is called ‘stale cheque’.
Cheque Bouncing “Dishonor of a cheque” is when a cheque is returned by bank on which it was drawn due to lack of required funds. When a cheque is dishonored, the bank sends ‘Cheque Return Memo’ along with the cheque to the banker of payee stating the explanations or reasons for a cheque being returned. In turn the payee’s banker shall give the dishonored cheque and memo to the payee. The payee can again submit the cheque within three months of date mentioned on the cheque if he/she believes it will be honored next time.
Section 138 of the Negotiable Instruments Act, 1881 states that “dishonor of cheque” is a criminal offence and is punishable with imprisonment up-to two years or with penalty which may increase to two times the amount of the cheque, or with both.
The payee has an option left for him i.e. to proceed legally in which drawer should be given a chance in the form of notice in writing for repaying the cheque amount immediately. To draft a legal notice, it is necessary to understand the components of offence of dishonor of cheque that is being supposed by means of such notice.
Following are some of the ingredients of the offence as articulated under Sec.138 of the Negotiable Instruments Act, 1881:
If a drawer does not make payment of the cheque amount within 15 days from date of receipt of the notice, payee may file a complaint in the jurisdictional magistrate court within one month from expiry date of 15 days as mentioned in the notice.
Preparation of legal notice in accordance with legal requirements and procedure of filing complaints involves various factors to be considered. Our well versed and experienced advocates help you to resolve this problem in an efficient manner and draft a Cheque Bounce Notice in consonance with all the legal provisions therein in a time bound manner.
Step1:- Receive free consultation on Cheque Bounce notice by our Legal experts
Step2:- Make Payment
Step3:- Provide necessary Facts and documents pertaining to the matter
Step4:- Receive the first draft within 7 days (Don’t like the draft, get upto 3 re-iterations free)
Step5:- After the draft is approved by the client, Notice is then sent via Registered AD Courrier
Click on apply now and get it done right away!!
Want to draft a Cheque Bounce Notice but don’t know how to go for it, don’t worry, LexOracle will help you. Our legal team helps to get your first draft done in 7* working days and if you don’t like the draft get up to 3 re-iterations absolutely free of cost. LexOracle provides an affordable and all-inclusive packages for your Cheque Bounce Legal Notice which will include the charges of Postage. Contact right now for free consultation and affordable quotation.
*Time period quoted is tentative and approximate
LexOracle is one-stop solution provider for any business entity, person or entrepreneur seeking for experienced lawyers or attorney, charted accountant and company secretary. Customer satisfaction, transparency in work and affordable cost has made us the leader of business incorporation, registration and legal services or support in India.