Before coming to the cheque bounce notice, let’s get to know the basics of the “cheque” and “cheque bounce”.<\/p>\n
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’.<\/p>\n
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<\/a>.<\/p>\n 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.<\/p>\n In India, as per Section 138 of the Negotiable Instruments Act, cheque bounce or cheque non-payment is a serious offense punishable with fine or imprisonment. For the protection of the rights under section 138 of the Negotiable Instruments Act, cheque beneficiary present cheque bounce notice<\/a><\/strong> to the cheque issuer within the period of 30 days of cheque return.<\/p>\n Recently, Parliament has passed The Negotiable Instruments (Amendment<\/a>) Bill, for quick prosecution in case of cheque bounce. Under this, an order may be passed regarding the payment of interim compensation to the complainant by the defaulter.<\/p>\n Following things must be contained under Cheque bounce Notice:<\/em><\/p>\n 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<\/p>\n A cheque bounce notice is sent through the registered post for the purpose of recording issuing date of notice formally. Cheque beneficiary can retain one copy of the letter with himself whereas the other copy is delivered to the cheque issuer through registered post.<\/p>\n Following conditions must be satisfied, in order to issue check bounce notice:<\/em><\/p>\n In order to take the legal action, the following steps must be taken:<\/em><\/p>\nWhat are the Things Required to be Considered for the Validity of Cheque Bounce Notice?<\/h2>\n
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How to Send Cheque Bounce Notice?<\/h2>\n
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Why and When Cheque Bounce Notice is Issued?<\/h2>\n
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How to Initiate Legal Action in case of Cheque Bounce?<\/h2>\n