What Should You Do In A Cheque Bounce Case?

There are many cheque bounce cases already filed under section 138 of the Negotiable Instruments Act of 1881. Generally, these cases on cheque bounce are filed mainly when people try to extract money from someone else or try to tarnish someone’s image out of a personal grudge. If you suffer from such a case, you must be in dire need of a cheque bounce case lawyer.

What makes a cheque valid?

In order to call a cheque valid, it should have the following:

a. The cheque must be written.

b. The drawer should sign the cheque.

c. The cheque should consist of the date.

d. The payment should be directed to a particular person.

e. The cheque should be payable on demand for a certain amount of money.

What is a cheque bounce?

A cheque gets bounced when the bank account of one person from which the money is to be drawn does not have sufficient balance to be drawn by the other person. At times like this, the bank returns the cheque saying that the cheque has bounced. The Negotiable Instruments Act of 1881 considers cheque bouncing as a criminal offense and a punishable one. The punishment can range from imprisonment for two years to a fine that is double the amount of the cheque. Furthermore, if an organization commits this same offense, then every employee and the company are held liable for the offense.

Things to do in case of cheque bounce

a. Keep a copy of the documents

It is always said that precaution is better than cure. Therefore, whatever transaction you make via cheque, you should have a copy of it. Some of the important documents you need to keep proof of are invoice, bank statement, draft cheque, etc.

b. Connect with your bank

As soon as you receive a cheque bounce, contact your bank immediately. Try to get adequate information about why the cheque has bounced and what needs to be done now. The bank is bound to inform you of the reason behind the cheque bounce.

c. Reply to the legal notice

If you have received any legal notice about the cheque bounce case, your first job should be to hire a cheque bounce case lawyer and ask him to send a reply to the notice as soon as possible. Under the Negotiable Instruments Act, 30 days is given to send a reply to the notice. Sometimes, the person who has filed a false cheque bounce case withdraws it after receiving the reply to the notice.

d. File a counter case

If a false cheque bounce case has been filed against you, you can hire a lawyer and file a befitting reply to the case. If you want, you can head towards filing a civil case against the person concerned to ask for compensation.

Conclusion

Next time when you deal with any cheques, make sure you do not make any mistakes. Further, ensure to have adequate balance in the bank accounts and then provide a cheque.