Cheque Bounce Notice
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According to Negotiable Instrument Act,1881 A cheque is 'bill of exchange' payble at demand and always drawn by specified banker.the person who issues the cheque is called the 'drawer ' and the 'drawee' is the person n whose favour cheque has been issued. at the time of presenting cheque to the drawee bank the cheque must contains name of the drawer and drawee,date,amount and signature of the drawer and drawee. a cheque bounce can take a place due to multiple reasons like due to insufficient funds in drawer account,closure of account, differs the signature of drawer etc.the cheque must be present into bank for en cash within three months from the date of issuing cheque.
Step by step procedure in case of Cheque bounce
- Drawer issues the cheque to the drawee for encashment of cheque amount
- Drawee presents the cheque in bank for encashment
- If cheque bounced due to multiple causes the drawee bank will issue cheque return memo by citing the cause of return
- Within 30 days from the date of receipt of cheque return memo the drwee should send legal notice to the drawer by informing the cheque bounce cause and reapay the cheque amount.
- In notice drawee has to give 15 days time to the drawer respond or pay the cheque amount
- If drawer not responded after lapse of 15 days or not paid the cheque amount to the drawer the drwee can file criminal complaint against drawer under section 138 of The Negotiable Instrument Act,1881.
- The drawee should file criminal complaint within 30 days after the lapse of 15 days notice period