CIBIL score gets affected when a Cheque bounces, which may make it difficult for you to take loans etc. A non-bailable warrant can be issued against the accused under sections 417 and 420.
You must be aware of Cheque bounce. Maybe this has happened to you sometime. Cheque bounce is also called ‘dishonor’ Cheque in technical language. Dishonored Cheque is one on which the bank refuses to pay. There can be many reasons when the bank does not clear theCheque or refuses to make payment on it. Also Read: Ujjwala 2.0: Pradhan mantri ujjwala yojana form online apply 2021 | PMUY Second phase starts pm ujjwala yojana list 2021 know here
The most important of all these reasons is the lack of sufficient amount in the account. There is not that much money in the account but if the Cheque is issued then it bounces in the bank. Sometimes the Cheque bounces due to the difference in signature. Also Read: Govt give information about present status of electronic vehicles (e-vehicles) in India
There is a provision for legal action in case of Cheque bounce. In case of Cheque bounce, a legal notice has to be sent from the drawee’s side. This is done within 30 days of the Cheque return from the bank. This notice is in the name of the drawer i.e. who has issued the Cheque from his account. Also Read: DGCA alert to passengers planning to travel abroad to check fares on airlines website DGCA Advice
If the drawer makes the payment after receiving the notice, the case is not registered. If he refuses to pay, a case can be filed within 30 days. The matter then goes to the court and its solution is also there. This becomes a problem for both the payee and the drawer. Also Read: Now you will be able to buy pizza, ice cream and coffee with bitcoin in India, this company started a new service
How to get Cheque bounce notice
Drafting a notice is not an easy task and it involves taking care of many legal provisions. Before serving the notice, the rules of the notice should be known and understood properly. Notice does not mean immediate action, rather it states that action can be initiated against you. Also Read: Know how many people in India earn Rs 100 crore annually… and how many people are poor
Therefore, while writing the draft of the notice, keep these things in mind. Once the notice is served, it cannot be changed in any way. What you have written in the notice cannot be changed again. This work is done only by a legal expert because he is aware of the draft full proof Cheque bounce notice.
Keep these things in mind in Cheque bounce notice
Mention the same amount in the notice for the amount of Cheque that has bounced for Rs. Do not write exaggeratedly, otherwise there may be trouble in the court. Whenever notice is sent, it should be within the stipulated period only. The notice should be given within the valid period of the notice. Also Read: EPFO: Depositing money in EPF every month can get more than Rs 1.5 crore, know how
Send notice when Cheque bounced due to less money. Notice must be served within 30 days of Cheque bounce. If the drawer has refused to pay within 15 days from the date of the notice, the legal notice should be sent within 30 days.
Court action
When the court accepts the notice, the accused is asked to appear. After this, the court proceedings are initiated under Section 138 of the Negotiable Instruments Act. Cheque bounce comes under the category of offense under this section. If the victim wants, he can file a criminal case as well as a civil case in this case.
Court fees have to be paid to pursue this case. While filing a Cheque bounce complaint, the complainant has to pay the court fee which depends on the Cheque amount. Court fee is Rs 200 for Cheque bounce up to Rs 50,000, Rs 500 from Rs 50,000 to Rs 2 lakh and Rs 1000 for Cheque bounce of more than Rs 2 lakh. Also Read:LPG Cylinder New Connection: Give a missed call and get a new LPG connection, know what is the whole process?
Bank can impose penalty
CIBIL score gets affected when a Cheque bounces, which may make it difficult for you to take loans etc. A non-bailable warrant can be issued against the accused under sections 417 and 420. However, the complainant has to prove the case of fraud in the court. If a person has bounced multiple Cheques at the same time, then all the cases will be settled together in the court. In this case, the bank can impose penalty against the drawer and the drawer.
