Cheque Bounce Cases in India: Legal Provisions and Remedies

Jan202025 by adminNo Comments

Cheque Bounce Cases in India: Legal Provisions and Remedies

Cheque Bounce Cases in India: Legal Provisions and Remedies A cheque bounce, also known as dishonor of cheque, occurs when a cheque presented for payment is returned by the bank due to insufficient funds, mismatched signatures, or other reasons. In India, cheque bounce cases are governed by the Negotiable Instruments Act, 1881, particularly under Section 138, which prescribes penalties and legal recourse for dishonored cheques. Common Reasons for Cheque Bounce Insufficient Funds: The account holder does not have enough balance to cover the cheque amount. Signature Mismatch: The signature on the cheque does not match the bank's records. Post-Dated Cheque: The cheque is presented before the due date. Overwriting or Alterations: Any unauthorized changes on the cheque can lead to rejection. Account Closure: If the issuer has closed the account…

Jan62025 by adminNo Comments

Cheque Bounce Cases: Causes, Legal Implications, and Remedies

Cheque Bounce Cases: Causes, Legal Implications, and Remedies Cheque bounce cases, also known as dishonored cheques, are a common financial and legal issue that can arise in both personal and professional transactions. Understanding the causes, legal implications, and remedies is essential for individuals and businesses to handle such cases effectively. What is a Cheque Bounce? A cheque is said to have bounced when it is presented for payment, but the bank refuses to honor it. The refusal is typically accompanied by a memo stating the reason for the dishonor. Common Causes of Cheque Bounce Insufficient Funds: The most common reason for a cheque bounce is that the account holder does not have sufficient funds to cover the amount. Signature Mismatch: If the signature on the cheque does not match the…

Jan32025 by adminNo Comments

Cheque Bounce Lawyer in Delhi

A cheque bounce occurs when a bank rejects a cheque presented for payment due to insufficient funds, a mismatch in signatures, or other technical or legal reasons. Here's what typically happens in cheque bounce cases: 1. Notification of the Bounce When a cheque bounces, the payee (the person or entity presenting the cheque) receives a return memo from their bank explaining the reason for the dishonor. The drawer (the person who issued the cheque) may also be notified by their bank. 2. Legal Implications Cheque bounce is a criminal offense in many jurisdictions. Under Section 138 of the Negotiable Instruments Act, 1881 in India, the following legal procedures apply: A. Sending a Legal Notice The payee must send a legal notice to the drawer within 30 days of receiving the…