Dated: 2024-05-07 16:18:10
I would like to know who can file the case of cheque bounce and what does cheque bounce means? Is it the same as dishonor of a cheque.Dishonor of a cheque and Cheque bounce is the same.
Cheque is a traditional method which uses paper to pay a sum to a person. It has been in use since long and is also trusted form of payment as it has the name of recipient on it, and only the person to whom it is addressed to can cash the cheque at the appropriate financial institution by proving their identity.
But whenever a cheque provided to the payee is deposited by him at the respective bank or the institution is returned unpaid, then it is called as cheque bounce.
The person who has suffered can proceed against the person who has provided him with a dishonoured cheque. Section 138 of Negotiable Instruments Act, is the most relevant section related to cheque bounce and other related aspects.
Basics : -
The person who has issued the cheque is also known as ‘drawer’. In case of a cheque bounce case, a legal notice or a demand letter has to be sent to the drawer. The letter can be drafted by the aggrieved person himself or he can take help of a lawyer to do the same.
The person aggrieved has 30 days to send a legal notice or a demand letter to the drawer after the bank has returned the cheque as dishonoured. After the notice or the letter is sent, the drawer has 15 days to of time to pay the amount. In case the amount is not paid by the drawer within the stipulated time then the aggrieved can file a case of cheque bounce.
Documents Required : -
The following documents are required before filing a cheque bounce case :
1) Original cheque and return memo
2) Copy of notice and original postal receipts.
3) Evidence affidavit.
Who can file the case : - The complainant or other person through the complainants power of attorney can file case. It is mandatory for the complainant to appear in court of Magistrate and examine under oath.
Krishnaveni Advocate