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An Overview
A cheque bounce occurs when a cheque presented for payment is returned by the bank due to insufficient funds, mismatched signatures, or other reasons. Under the Negotiable Instruments Act, 1881, issuing a cheque that bounces can result in legal consequences for the issuer.
A Cheque Bounce Notice is a formal legal communication sent to the cheque issuer, demanding payment for the dishonored cheque. It serves as the first step before initiating legal proceedings.
Why is a Cheque Bounce Notice Important?
How LegalMonk Can Help
Steps Involved in Sending a Cheque Bounce Notice
FAQ's
If the issuer fails to respond or pay within 15 days, you can file a legal complaint in the appropriate court within 30 days.
While email is an additional method, it is advisable to send the notice through registered post or courier to ensure legal validity.
The notice must be sent within 30 days of receiving the cheque return memo from the bank.
Yes, you can claim the cheque amount along with legal expenses and interest, subject to court approval.
Yes, the issuer may face penalties, including imprisonment for up to two years or a fine up to twice the cheque amount, or both.
