Cheque Bounce Lawyers in Guwahati. Connect and Consult the Cheque Bounce Advocates in Guwahati!

ALL YOU NEED TO KNOW ABOUT CHEQUE BOUNCECheque bounce is one of the most common problem people face these days. What is cheque bounce? When does cheque bounce happens? What are the reasons for cheque bounce? How to deal with that? These are the common queries people have regarding cheque bounce. In this blog, I shall discuss all the topics related to cheque bounce and how to deal with that.WHAT IS CHEQUE BOUNCE?Before that we need to know what is actually a cheque? A cheque is basically a bill of exchange drawn upon a designated banker which is payable only when it is demanded by the applicant. Cheque bounce which is also known as dishonour of cheque is a basically failure of payment by the drawer towards the drawee or say it is an unpaid cheque returned back by the bank due to some or the other reasons.WHAT ARE THE REASONS FOR CHEQUE BOUNCE?There are various reasons a cheque can bounce. Following are the reasons for cheque bounce:-·      The signature on the cheque and the signature on the official documents like passbook, etc are different.·      Overwriting on the cheque can also be a problem if it is clearly visible.·      Cheque presented after the expiry of time period i.e. 3 months·      By any chance the bank account has been closed by the account holder or by the bank itself.·      Opening balance is insufficient·      Insufficient funds in the account of the drawer.·      The payment has been stopped by the drawer himself·      Inconsistency in the figures written on the cheque.·      Inconsistency in the amount number on the cheque.·      If the stamp of the company presenting the cheque is missing.·      In case the cheque is presented from a joint account and the signature of any of the account holder is missing.·      Any of the person i.e. the drawer or the drawee has died.·      By any chance the drawer has turned insolvent.·      Signs of insanity found in the drawer.·      Any alterations found in the cheque.·      Cheque issued against the rules of trust.·      The bank doubts the authenticity of the cheque.·      The cheque has been presented at the wrong branch by the drawee.·      The amount mentioned in the cheque crosses the limit of the cheque overdraft.Thus, above mentioned are the situations where a cheque issued can bounce due to some minor problems and hence can create a problem for both the drawer and the drawee.Well, every problem comes with a solution. Thereby we will discuss about the solutions and how to deal with cheque bounce cases:-CHEQUE BOUNCE CASE- WHAT AND HOW TO DEAL WITH THE PROBLEM?According to Section 138 of the Negotiable Instrument Act, 1881 cheque bounce is a criminal offence. Nevertheless, the aggrieved party in such cases can file both the criminal as well as a civil suit against the accused.Below mentioned are the actions one can take for a cheque bounce case:-·      Resubmission of the ChequeAfter being aware of the bounced cheque, the issuer of the cheque gets another chance to correct the error which caused the cheque bounce and can ask the payee to resubmit the cheque for clearance provided it is done within the time frame which is 3 months from the date of cheque bounce.·      Demand NoticeBy any chance if the cheque happens to bounce for the second time the recipient of the cheque opts to send a demand notice to the issuer of the cheque asking to transfer the required amount within the next 15 days. Also, the demand notice is sent within 30 days of receiving the notice of bounced cheque from the bank. ·      Filing a ComplaintEven after sending a demand notice there is no response from the issuer of the cheque then the drawee can file a complaint before the court within 30 days. You can also file a case after 30 days if you can provide a reasonable justification for the delay and the magistrate finds the reason justifiable enough. Keep in mind the court must be situated in a location where the cheque was presented or returned by the bank.The case can be filed under Section 138 of the Negotiable Instrument Act, making sure that the cheque issued as a gift cannot be covered by under such section.Moreover, for seeking remedies the recipient of bounced cheques can also file a complaint about cheating under Section 420 of the Indian Penal Code.·      Civil ComplaintIf filed a complaint regarding bounced cheques the issuer gets the punishment in terms of jail but in most cases does not let the recipient get his dues. Thus, it is advisable for the recipient if the bounced cheque to file a separate civil suit for the recovery of the amount he is supposed to get.PUNISHMENT AND PENALTYAfter receiving the complaint along with relevant papers and affidavit the court shall issue summons and hear the matter. If found guilty then the defaulter shall be punished with imprisonment for a term of two years or more or monetary penalty which can be twice the amount of the cheque or both. Also, the bank has the right to cease the cheque book facilities and close the account for repeated offences of cheque bounce. Consult Lawyer for Cheque Bounce Matter

|A Cheque is a mode of payment that is widely used for transactions including loan re-payment, payment of salary, bills, fees, and so on. Banks on a daily basis process and clear the vast majority of cheques. Issuing cheques are essentially proof of payment. However, cheques undeniably are a reliable mode of payment for most people. Conversely, issuing crossed “Account Payee Only” the cheque is advisable and indeed recommended so that the cheque is not misused in any way, shape or form.  A cheque basically is a negotiable instrument and they are of two types including Crossed and Account payee cheques which are non-negotiable by any person excepting the payee. The issued cheques have to be deposited into the bank account of the payee. The legal definition of the author of the cheque is ‘drawer’ and the cheque is drawn in favor of the ‘drawee’ and the paying bank is typically known as the ‘payee’. Cheque bounce cases in recent times are quite common. Occasionally, huge cheque amounts remain unpaid and payee banks return them dishonored.Dishonor of cheque results in the drawee bank issuing a ‘Cheque Return Memo’ to the payee’s banker pronto stating the reason for non-payment of the cheque. The banker of the payee then returns the memo and the dishonored cheque back to the payee. The cheque can be reissued or the payee can reissue the cheque within the timescale of three months of the cheque date if the drawer believes issued cheque will be honored the second time around. However, if the issuer of the cheque fails in making a payment, then its the payee’s right to proceed along the lines of legally prosecuting the drawer.  The defaulter/drawer may be legally prosecuted by the payee for the fact that the cheque was dishonored. However, the only exception to the rule is if the cheque amount is huge and the cheque payment is towards discharging debt or other defaulter liabilities towards the payee. In the case of a gift cheque, which may have been towards obtaining a loan or for illegal purposes, then the drawer is exempt from being prosecuted.Legal action In case of payee deciding to proceed legally, then the payer ought to have the chance of repaying the cheque amount pronto. The chance ought to be given only in the form of notice in writing. The notice ought to be sent to the drawer within a month of receipt of the “Cheque Return Memo” notice from the bank. The notice also ought to allude to the fact that the cheque amount ought to be paid to the payee within a fortnight from the receipt date of the notice by the issuer. If the issuer of the cheque is unable to pay within a month of receipt of the notice the payee is entitled and indeed empowered to file a criminal complaint under Section 138 of the Negotiable Instruments Act. Consult Lawyer for Cheque Bounce Matter