Response

A cheque bounce is a criminal offence, according to Section 138 of the Negotiable Instruments Act of 1881. In the case of a check bounce, the aggrieved party can file both a criminal and civil complaint against the accused. If a cheque bounces, the drawer has three months from the date of issuance to resubmit the identical check if he or she feels it will not be dishonoured again.

After the bank returns the cheque, the first step is to send a formal claim legal notice/letter to the drawer within 30 days of the date the cheque was issued and returned by the bank to the drawee.

The drawer must be ordered to pay the amount in the legal notice (as stated on the cheque). The notification must also explain that if the money is not received before the 15-day period, the drawer would face effective legal action under the Negotiable Instruments Act of 1881.

Because there isn’t a conventional structure for such a message, it should be simple and to the point. The major purpose of the notice must be stated clearly, which is to demand payment from the drawer while also notifying and warning the drawer of the legal consequences that may occur if the pending money is not paid.

A copy of the notice’s delivery evidence, such as a postal receipt or the notice’s online status, must be kept by the drawee.

The drawee can submit the demand notice oneself, but it’s a good idea to have help from an expert check bounce lawyer to ensure that the legal language is proper and that the notice has a feared impact on the drawer for his breach of confidence. A complaint is only filed if the drawer has not reacted to the demand notice within 15 days of receipt, has been delaying payment unduly, or has outright refused to pay the money.

Within the specified time period of 30 days, a lawsuit must be filed in the court that has jurisdiction over the conflict. If you file a check bounce case against someone, even if he becomes bankrupt, the case will stand.

Reference: Section 138 of the Negotiable Instruments Act, 1881 – – AHG305 – 202100581 – 164 – 190- 20210084202100244751

LAWAYZ-2023-1031