Bank cheques are a standard way to conduct financial transactions. This is true since it is practical, does not call for a lot of formalities, and serves as a reliable payment receipt. However, not everything is as clear-cut as it ought to be. Transactions made with cheques occasionally fail to complete for a variety of reasons, causing uncertain cheque bounces.

Here is everything you need to know about the procedures for handling a bounced check and how a corporate dispute lawyer in Gurgaon can assist you in resolving the issues that expertise.

What is Cheque Bounce?

The Negotiable Instruments Act, 1881, Section 138, governs cases involving returned cheques. When a bank returns a cheque unpaid or does not honor it, it is referred as bounced. Wrong signatures, mismatched numbers on the cheque ,invalid dates, tores and overwriting are a few of the causes. These are minor problems that can be resolved without the involvement of the court. When a financial instrument fails due to insufficient funds in the drawer's account, this imposes a serious implication.

As a case for a bounced cheque is time-bound, if the receiver of the cheque does not initiate action against the defaulter within the allotted period, it may result in the receiver of the cheque having no recourse. Therefore, it's critical to deal with a case of a bounced cheque as quickly as possible to avoid all the associated ramifications.

Legal Procedure for Bounced Cheque

A bounced cheque case proceeds in a similar way to any other legal case. The cheque bounce case section 138 begins with a cheque dishonour resulting from a debt or legal duty. Following are the legal steps for cheque bounce implications in India.

● There should be some reason for cheque dishonour.
● After such misconduct, legal notice is delivered within 30 days.
● The notification has been served for 15 days.
● The cheque drawer does not address the causes of check bounces.
● Police report on a bounced cheque filed within 30 days of the allotted 15-day period
● In addition to the aforementioned police complaint regarding a bounced check, cheque bounce attorneys must file a case under Section 138 of the Negotiable Instruments Act, 1881 before the court.
● According to Section 138 of the lawsuit for a cheque bounce, the court summons the drawer.
● The accused, who is the drawer of the cheque, must testify before the court.
● The plaintiff must present the learned court with all pertinent documents, such as the returned cheque and the legal notification for cheque bounce format.
● If the matter falls under Section 138 of the Negotiable Instruments Act of 1881, the court will consider the statements made by both parties as well as the evidence presented to it.
● Depending on the suffered monetary and non-monetary losses, the court's decision will determine whether and how much the plaintiff receives.

Summing Up

Cheque bouncing is a fairly typical event, and should not be treated lightly. You must speak with a cheque bounce attorney or corporate dispute lawyer in Gurgaon for assistance. For more details, you can always take assistance from Legal Eagles Eye.

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