Merely a piece of paper and nonetheless indispensable, cheque is the principal instrument used by individuals to transact. Making payments has become equivalent to issuing cheques, designating it as the most endorsed negotiable instrument. Cheques possess the characteristic of payment on demand sanctioned with possibility of payment on a future date.
A cheque is specifically drawn upon a banker and it is payable only on demand. However, oftentimes a cheque is dishonoured by the bank ascribing to issuer’s shortcoming, which sometimes may be an intentional deficit so as to escape payments. A cheque may get dishonoured in the following cases:
- Lack of sufficient funds
- Signature does not match.
- Insufficiency of opening balance.
- Cheque presented after lapse of three months.
- Insolvency of the customer.
- An overwriting or alteration in the cheque.
- Disparity in the number and the words mentioned in the cheque.
- Payment stopped by the account holder.
A criminal offence, dishonouring or bouncing of a cheque is a critical matter, but the majority are uninformed about the precise process to be followed for filing a cheque bounce matter. It is also better to consult with the best cheque bounce case lawyers in Delhi to have complete clarity. With around 40 lakh cases of cheque bounce cases in India, cheque bounce is recurrent.
Businesses are most vulnerable to cheque bounce as transactions regarding vendor’s payments, salaries, office expenses, taxes and so on are made commonly through cheque. A business finds itself in a loop and financial loss when it is unable to claim damages for a bounced cheque. You must talk to Cheque Bounce case lawyers in Mumbai to know everything about a cheque bounce case.
To make the process of initiating a cheque bounce case easier, here’s a step-by-step guide on the process involved in filing a court case when a cheque issued to you bounces!
1. Obtain the Cheque Return Memo: You need evidence that your cheque bounced and the issuer had a liability to make payment and the cheque return memo issued by the payee bank is most significant document. You must talk to Cheque Bounce case lawyers in Pune to know everything about a cheque bounce case.Other documents that are required to file a cheque bounce case are as follows:
- Any agreement between you and the issuer.
- Dishonoured Cheque
- Copy of the Legal Notice sent to the cheque issuer.
- Postal receipt of sending notice.
2. Send a demand notice: Send a legal notice to the defaulter within 30 days of receiving the cheque return memo. While sending the notice, categorically state all the facts relevant to the case, nature of the transaction, amount, date of depositing the cheque in the bank, name and address of the branch of the bank where the cheque is deposited, date of dishonouring. You must talk to Cheque Bounce case lawyers in Bangalore to know everything about a cheque bounce case.
3. File a Criminal complaint: In case the defaulter fails to make the payment within 30 days of receiving the notice, you can file a criminal complaint under Section 138 of Negotiable Instruments Act, 1881.
You are required to file the cheque bounce matter within a month of the expiry notice. If you fail to file the complaint within the specified time limit then your suit will become time barred and will not be entertained by the courts unless you prove there was sufficient and reasonable cause for delay. You must talk to Cheque Bounce case lawyers in Kolkata to know everything about a cheque bounce case.
It is important to file the case against every person who was authorised to issue the cheque. For instance, if your bounced cheque was issued by a company, naming all directors (excluding independent directors) of the company as accused, along with the company would be more reasonable.
4.Follow the Court procedure: You can file a complaint before the Magistrate within whose territorial jurisdiction the cheque was dishonoured by the bank. If the cheque was issued in one state, say Kerala but bounced in Delhi, you can file a complaint before the Delhi Magistrate under whose jurisdiction it bounced. You must talk to Cheque Bounce case lawyers in Gurgaon to know everything about a cheque bounce case.
Depending upon the value of your cheque, requisite court fee is levied which however, varies from state to state. For instance, if the cheque amount is upto INR 50,000 bounces in Madhya Pradesh then a fee of INR 200 will be applicable, if the value of the cheque is more than INR 50,000 but less than INR 2,00,000 fee will be INR 500 and if the value of the cheque is more than INR 2,00,00 a fee of INR 1000 will be applicable. In some states, a percentage of the amount of bounce cheque is levied as the court fee.
Graver than it appears, cheque bounce diminishes a person’s financial credibility. The defaulter is punished for a term of two years or fine which may extend to twice the cheque amount, or both. Knowing the requisite steps involved in filing a cheque bounce case is significant.
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