A cheque bounce notice informs the defaulter of the seriousness of the cheque bounce offence and is mandatory before filing a complaint.
Our platform connects you to highly rated lawyers
The first draft will be shared with you in four days
We do two rounds of iterations at no extra cost
Cheques are an essential aspect of transaction in the modern economic world. Cheques also carry an added tension with them of non fullfilment of the payment due to lack of balance in the account. This is known as the case of cheque-bouncing. Action for recovery of bounced cheques is not rocket science, but requires prompt and timely action. The first step to be taken would be to send a letter (a demand notice,recommended to be done by lawyers as the demand notice is a document of serious contention at trial) to the party who wrote the cheque (the drawer), threatening to initiate proceedings if the amount due is not paid.
The threat of prosecution can often work its magic and result in prompt settlement. Demand notice must contain the following1.Statement that you presented the cheque within its period of validity;2.Statement of debt or legally enforceable liability;3.Information about the reason of dishonour of cheque (Check the memo of the bank returning the cheque for these);4.Calling upon the drawer to pay the amount due; and5.Statement that you are giving the drawer 15 days to pay up or you will initiate legal action.
Information about bouncing of cheque received.Demand notice must be sent within 30 days.The Demand notice provides the drawer 15 days to pay the amount.
The notice should be sent by post or in case of paucity of time, by registered post. The proof of service of the notice must be preserved.
It is the 15th day and no payment has still been received? You now have no more than 30 days within which to file a complaint before a magistrate.
A complaint can be filed before the magistrate at the place where the bank in which the payee has account is located.
At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.