Blogs

Legal actions you can takeYou have the option of taking legal action in the event that an individual fails to return your funds in accordance with the terms that were agreed upon. You can take the following actions:1.              Send a demand for payment in writing.2.              In the small claims court, file a complaint.3.              Obtain legal counsel to present your case to the appropriate court.4.        �... Read More

INTRODUCTIONCheque bounce cases are very common these days. Usage of cheques is also very common these days. The more the cheques are used, the more are the instances of cheque bounce. However, a cheque bounce is contrary to a lawful transaction between two people, and the person whose cheque bounces is liable for punishment under the law. section 138-142 of the Negotiable Instruments Act deals with the cheque bounce situations and prescribes app... Read More

Civil Remedy/Civil case: The drawee may also file a civil case as a Suit for Recovery, as per the appropriate pecuniary and territorial jurisdiction, before a Civil Judge/District Judge, seeking recovery of the principal amount of the cheque and any interest due on the same. As per Limitation Act, 1963, a Recovery Suit may be filed within 3 years from the date the cause of action arises.The two remedies can co-exist, as very often cheque amounts ... Read More

How would you deal with a False Cheque Bounce Case?The victim in such cases need not worry much about it as it is a false accusation and generally easily proved with the valid documents that there was enough balance or fund in the bank account of the issuer which would ensure there was no cheque bounce. Some important measures to take when a situation of false cheque bounce arises: Collecting all the important documents – The most wise and s... Read More

In a democratic setup it is the responsibility of the Legislature to make laws that are attuned to the realities of the present and in the interest of the society at large. At present the entire world is witnessing an unprecedented crisis and India is not immune to the impact of this global crisis. The governments at the centre and state levels have been implementing policies to tackle the crisis, whether it is at safeguarding human lives or secu... Read More

With the rise in usage of negotiable instruments as an alternate method of transaction in various businesses, there has been a significant rise in the cases of “cheque bounce”. Issuing of post-dated cheques in favour of the drawer is somewhat common practice in many business transactions to provide a “breather” to the drawer.A bill of exchange that is drawn upon a specified banker and payable on demand by that banker is called a cheque. A... Read More

ChequesThe cheque is defined under section 6 of the NI Act,1881 as: “A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.”In simple words, a cheque is an unconditional order in writing to the bank, duly signed by the person who has deposited the money in the bank.A cheque is ... Read More

Nothing which is mentioned under Section 138 shall apply, unless-- The cheque is presented to the bank within the period of its validity or within a period of six months from the date on which it is drawn, whichever is earlier; - The payee of the cheque, as the case may be, makes a demand for the payment of the mentioned amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of info... Read More

When would you need to recover debt?From a loan, credit line or accounts receivable either in part or whole, when the debt cannot be recovered, it becomes bad debt. Additionally, when the enterprise or the asset that becomes owed to repay debt cannot do so anymore, there arises a need to recover debt. /* Define the styles for the glowing button */ .glow-button-container { display: flex; justify-content: center; } .gl... Read More

While some business organizations and undertakings flourish each day, there are some that fail to cope up with the changing trends of the market and succumbs to insolvency and bankruptcy. In such scenarios, the winding-up procedures are governed by the Insolvency and Bankruptcy Act which has recently undergone the much-required amendment.What is the IBC Act?The Insolvency and Bankruptcy Code is the supreme authority on bankruptcy law in Indi... Read More

Cheques are an integral part of our economy and are used in almost all transactions, be it paying the fees of your child or making bulk payments to a vendor. Cheques are becoming the most preferred mode of payment.What is a chequeA cheque is a negotiable instrument or in other words, a document that represents a promise to pay which has been defined under Section 6 of the Negotiable Instruments Act,1881. The person who is the author of the C... Read More

Consequences of wrongful dishonor of cheque: In normal circumstances, if a cheque is dishonored, the defaulter may be punished with imprisonment up to two years or with a monetary penalty or with both as it is a criminal offence; this is in accordance with section 138 of the Negotiable Instrument Act, 1881. However, in case the cheque is dishonored wrongfully, the banker must bear some penalty according to section 31 of the Act. When a customer h... Read More

Can I get arrested for a cheque bounce in India?A cheque is said to be dishonoured or bounced when it is presented for payment to a bank but it is not paid because of some reason or the other.Cheque bounce is a criminal offence in India, covered under section 138 of the Negotiable Instruments Act. /* Define the styles for the glowing button */ .glow-button-container { display: flex; justify-content: center; } .g... Read More

The banks, financial institutions, and even personal lenders are now facing the problem of recovering the money advanced to individuals and business entities. Due to this, lenders have started restraining themselves from giving out loans. The need for an effective system of recovery that could work in favour of the lenders, was fulfilled after the formation of the Debt Recovery Tribunals in India.With Dispute Resolution Tribunals now in place, a ... Read More

Sometimes, one can lack in financial freedom when it comes to buy something really expensive which may cross the budget line. In that case, applying for a loan can be the real way out as it meets the immediate financial and unexpected needs. These days’ loans are easily available and extend to provide certain flexibility in the financial limits. It helps you achieve life goals by assisting you to buy things like car, home or higher education.Th... Read More

Having surplus money to invest or to use for other purposes is a boon not everyone is lucky to have. This is why many of us acquire money on credit in times of need. This leads to monetary debt that we need to pay.What is debt? Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangem... Read More

Information Required in Case of Cheque Bouncing before Sending Legal Notice: If the cheque has been bounced then the drawee can be paid by filing the case into the court but before filing case the drawee has to send the drawer a legal notice mentioning the bouncing of the cheque but to send a legal notice there are certain information which is important for making and sending the legal notice are as follows:The date when the cheque has been issue... Read More