How Can I Find The Solution For My Cheque Bounce Case?

Lead india
Sep 7, 2023
3 min read

A cheque is a type of "bill of exchange" that is payable on demand. The 'drawer' is the person who issues the cheque; whereas the 'drawee' is the person in whose favor the cheque is issued.

Cheques are utilized in practically all transactions, including loan repayment, wage payment, bill payment, and fee payment. Banks handle and clear the vast majority of checks daily. Cheques are issued to provide proof of payment. Nonetheless, for many individuals, checks remain a dependable mode of payment. To avoid abuse, however, it is usually good to issue crossed "Account Payee Only" cheques. cheque bounce indicates that the procedure of depositing the cheque in the bank was unsuccessful.

There could be a number of factors, such as:

When there is insufficient money in the issuer's account. It is therefore prudent to exercise caution before issuing a cheque to ensure that there is sufficient balance in the issuer's account.
When the date on the cheque is illegible, the digits are scrawled, or the date on the cheque is more than three months old, the bank can bounce the cheque.
When the signature does not match the records of the bank.
When there is a discrepancy between the quantities stated in numbers and language.
When there are too many stains or blemishes on the cheque.
When a cheque has been overwritten, scribbled, or corrected.

Legal Provision

Section 138 of the Negotiable Instruments Act of 1881 offers legal redress in the event of a cheque bounce or dishonor. This section was recently decriminalized. On June 8, 2020, the Ministry of Finance recommended decriminalizing certain minor violations to improve business sentiment and streamline judicial processes, including Section 138 cheque bounce. The primary goal of decriminalizing this clause is to encourage foreign investment in our country. The economy of India has suffered greatly as a result of the Coronavirus Disease, and these initiatives would also assist in boosting India's economy.

According to Section 138 cheque bounce case, cheque dishonor or cheque bounce is a criminal violation punishable by imprisonment for up to two years or a monetary penalty, or both. If the court determines that you are guilty and that the bank's case is without validity, it will issue you all of the charges.

False Cheque Bounce case:

Many individuals still choose to make payments by cheque for a variety of reasons, such as the ability to pay persons who do not have a bank account, or because they are not yet comfortable with online banking. However, cheque bounce cases are on the rise in today's world, and Indian courts are overflowing with these lawsuits filed under Section 138 of the Negotiable Instruments Act, of 1881.

These cases are frequently used to obtain money from someone or to hurt and ruin his or her reputation. However, some of these cheque bounce instances are fraudulent and are not actual cases that target innocent people who wind up in legal trouble because they do not know what to do.

Cheque bounce case solution

When a person is falsely accused in a Cheque case, the most prudent and intelligent thing to do is to gather evidence that would prove him guilty of the allegation leveled against him. Similarly, in this situation, gathering the necessary documentation to show my innocence and the bank's wrongdoing is essential.
If the cheque bounces then, the bank will notify you. You must next call them to confirm whether or not this occurred and, if so, what the circumstances were.
It is not simple to draft a legal notice, and you should not take it lightly since once the notice is created and issued, you will be unable to amend its content and must adhere to it. You would not be able to contradict the assertion you made in your notification. So you should speak with a lawyer who specializes in cheque bounce cases and respond to the notification regarding the cheque bounce case that you received from the cheque receiver. The response should be sent within 30 days of receiving the notification. Many cases of fraud and false allegations are dropped when a legal notice is sent.
If cheque bounces what happens.is you have the legal right to bring a counter-civil complaint against the individual who filed a fake cheque bounce against you. You can seek restitution for the wrongful allegation. You may also seek compensation for any losses or expenditures incurred as a result of dealing with the bank's fraud case. You can even launch a defamation suit against the false accuser.

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