What is cheque bounce?

Cheque bounces when the bank doesn’t honour a payment. Some common reasons are incorrect signatures, mismatch of figures written on the cheque (in figures and words) and overwriting. These issues are minor and can be solved without the court’s intervention.

However, the major cause of concern is when a cheque bounces due to insufficient funds in the bank account of the person who gives the cheque.

What to do in a cheque bounce case?

Cheque Bounce is defined under Section- 138 of the Negotiable instruments Act, 1881. If you have received a bounced cheque then you have 2 options.

  • You can send the person a notice and if you do not receive any response within 15 days then,

  • You can send them a Legal Notice, by filing a complaint in Court.

What should be in the Demand Notice?

  • You can send them a Legal Notice, by filing a complaint in Court.

  • You must clearly state the value of debt and the legal consequences arising due to failure in payment

  • You must provide information regarding cheque bounce as returned by the bank

  • You must demand the payment of the amount to be paid within 15 days of receiving the Notice

All this might look complicated and confusing but, with the right expert lawyer from LawInsta getting your money back will be a cake walk.

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  • Free telephonic advice and counselling

  • The expert cheque bounce lawyer from LawInsta will draft your Legal Notice

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