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…