Cheque bounce in India

1. Cheque bounce in India PathLegal www.pathlegal.in

2. You may think that it is easy to get someone to pay up whose cheque has bounced.  But timing and procedure are very important in cheque bounce in India.  • If you are in need to recover an amount which is due on a cheque, that has bounced, you may follow the below mentioned ways. • Firstly send a demand notice to the party who issued the cheque. Through this notice you may threaten to initiate proceedings under the NI Act, if the amount due is not paid. • Hopefully, the threat of prosecution can work magically and lead to speedy settlement. If the party is an individual, the proceedings will go under section 138 of the NI Act and if it is a company, the   M D can be prosecuted personally under section 141. • The duration to send demand notice is within 30 days from the date you found that the cheque has bounced. • There is no specific format for this. Its purpose is to simply demand payment and also to inform the issuer that if the payment is not made within 15 days, he/she will be prosecuted.  

3. If you are for sure can draft a notice yourself, a lawyer is not required to send this notice. Get it verified by a lawyer for a small sum. This notice often becomes the point of aggressive battle when a dispute does reach trial.  • Remember, proof of service of the notice is very important. Either you can send it via courier if pressed for time or send a copy through registered or speed post.  The perfectly viable option is speed post. • If you are a victim of cheque bounce issue, it is advisable to go for criminal prosecution than filing a civil suit. You could consult experts by referring: http://www.pathlegal.in/ChequeBounce/India/

4. Thank You