Cheque Bounce India | Cheque Rebound India

1. www.pathlegal.in Cheque Bounce in India

2. Cheque is a negotiable instrument. The issuance of cheque can be the reason for securing proof of payment. •   Crossed and account payee cheques are not negotiable by any person other than the payee.  • It has to be deposited into his bank account. 

3. Points to be noted:- • It may be better to date the cheque invariably.  • A cheque is valid for six months only, from the date mentioned in the cheque for payment. •  After the period of six months, that cheque may be called as a ‘stale cheque’. Blank cheques are not advisable.

4. In India, Cheque bounce is a criminal offence. In case, if the cheque get bounced, send a demand notice to the party who wrote the cheque, threatening to initiate proceedings if the amount due is not paid. • It must be sent within 30 days from the date you found out that the cheque has bounced. There is no prescribed format for this notice. • The purpose of this notice is to demand payment and inform the issuer that if payment is not made within 15 days, he/ she will be prosecuted. The threat of prosecution can often work its magic and result in prompt settlement.

5. The complaint by the payee becomes barred by limitation of time, if fails to file within thirty days, the jurisdictional magistrate court may refuse to entertain such a belated complaint.  • But if the payee justifies the delay with sufficient reasons, he may make an application before the magistrate along with the complaint and seek condoning of delay. •   Perception of the complaint may be taken if the Court is satisfied that the payee had sufficient reasons for delay in filing the complaint within the prescribed period. Must consult a well versed lawyer in this field. • http://www.pathlegal.in/ChequeBounce/India/ • You can get more information about Cheque bounce in India in the above mentioned link.

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