Cheque Bounce case: legal procedure
I received bounced cheque and banker memo on10/3/2014.within what date I should cause the issuance of legal notice to the defaulter
Sec 138 Negotiable Instruments Act, 1881, deals with cases where cheques are dishonored or bounced.
There are 3 criteria which need to be fulfilled in order to file a suit under this:
1. The cheque needs to be presented in the bank within six months from the date when it is drawn or within the period of its validity, whichever is earlier.
2. When a cheque bounces, the payee’s bank (your bank) gives a memo and the dishonoured cheque back to you. You need to send a formal written notice with all the relevant details to the drawer (the author of the cheque) in writing within thirty days of receiving the memo.
3. And the drawer needs to pay you back the sum in fifteen days. If not, then you can file a case against him/her.
According to the law, if once a cheque is dishonoured, the payee can submit the cheque for a second time within three months. Your thirty days will start from the day when you received the memo from the bank and the dishonoured cheque the last time.
You need to send him/her a written complaint with all the relevant details within thirty days from the dishonouring of the cheque the last time. If he/she does not pay you the sum within fifteen days of receiving this notice, you have the right to file a suit in the court of the Judicial Magistrate or Metropolitan Magistrate under whose jurisdiction your bank falls.
Book a phone consultation with a top-rated lawyer on Lawfarm.