What is the procedure for sending legal notice? Can I send when a cheque is bounced?

Yes, you can send a legal notice when the cheque is bounced. Seek services from a lawyer to send a notice on your behalf or you can send a notice yourself to the person who gave you the cheque and call for action, failing which you will take legal action against him / her.

To send a legal notice for cheque bounce means taking a legal action against the person who has issued a cheque that was returned to the cheque beneficiary unpaid. To know the process fully, watch the video provided below. Before that let us understand, when this happens, it is considered an offence under the Negotiable Instruments Act 1881 in India, and once a legal notice is issued for cheque bounce, it is the responsibility of the cheque issuer to make the payment.

A cheque bounce notice under Section 138 must be presented to the cheque issuer within 30 days of return of cheque due to its validity. Since cheque bounce is considered as a serious offence in India, which is punishable with imprisonment or fine under Section 138 of the Negotiable Instruments (NI) Act.

A Cheque is a “bill of exchange” payable on demand. The issuer of the cheque is known as ‘drawer’ whereas in whose favor the cheque is issued is known as ‘drawee’.

What is Cheque Bounce?
Cheque Bounce notice is nothing but an intimation to the issuer that legal action will be taken by the cheque beneficiary in case of non-payment of cheque amount on an immediate basis.
In today’s modern economic world, Cheque is construed as an essential aspect of any transaction. Cheque bounce is a condition which arises due to the non-payment of the amount because of the lack of balance in the account. For the recovery of the amount, prompt action must be taken. Firstly a letter is sent to the drawer to make payment otherwise proceedings shall be initiated. Sometimes a prompt settlement is done on the letter.

Following things must be contained under Cheque bounce Notice:

1.   It must be in reference to Section 138 of the Negotiable Instruments Act;

2.   Information regarding the cheque presentation,

3.   Information regarding the request made to the cheque issuer to make payment on an immediate

4.   Reason for non-realization of payment

5.   A notice must be presented within 30 days of  return of cheque to the cheque issuer.

How to Send Cheque Bounce Notice?
A Cheque bounce notice can be drafted through our platform. Once the drafting is completed, it is required to take a print on a plain paper or on the letterhead of the business thereafter it is delivered to the cheque issuer. Cheque bounce notice must contain the following

1.   Name of the cheque beneficiary

2.   Name and address of the check issuer,

3.   The return date of the cheque,

4.   Reasons for cheque return

5.   Request made to check issuer for immediate alternate payment

6.   That it is issued as per the Section 138 of the  Negotiable Instrument Act.

    In order to take the legal action, the following steps must be taken:

a) Cheque Beneficiary issues the Cheque bounce notice by the registered post to the defaulter within a period of 30 days of cheque dishonor. The cheque bounce notice must be in a proper format consisting information regarding the transactional nature, the amount involved, the date on which cheque deposited with a bank, cheque bounce date, the reason of cheque bounce, and beneficiary made the payment request within 15 days.

b) Within 30 days from the expiry of the notice period of 15 days, the payee can file a criminal case in a court in case of cheque issuer made default in payment.

c) Complaints regarding Cheque bounce must be filed in a court of such city where the cheque was presented.

d) Once the case is admitted in the court, a hearing will be done and summons will be issued under Section 138 of the Negotiable Instruments Act.

Cheque defaulter would have to appear before the Court for resolution of the matter.

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