Draft Legal Notice / Reply to a Legal Notice of Cheque Bounce

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What's Cheque Bounce / Cheque Dishonour

Cheque bounce or dishonour of the check shall arise when the check that is presented to the bank for payment is returned either because of inadequate funds in the drawer's account or the signature on the check does not suit the signature of the drawer or some such excuse. Throughout India, test fail is deemed to be a civil crime and the law regulating the crime is laid down throughout section 138 of the Negotiable Instruments Act, 1881.

The Causes of Cheque Rebound

Below are some of the reasons why a test is skipped or disheartened: 

1. Insufficient funds in the account of the individual issuing the check 
2. Unmatching the signature on the test 3. The date of the check, i.e. the date shown on the report, has yet to arrive 
4. Stale verification, i.e. the verification, is submitted to the bank 3 months after the check has been given 
5. When the transfer is stopped-where the drawer tells the bank to interrupt the transfer and not to pay for the check already given 
6. Difference between the number of terms and number 
7. Disfigured or Broken Check-a check may be disheartened whether it is ripped, broken or not in a decent state or has any specifics that are not easily visible.

What's going to do when a test is bounced?

Once the check has been dishonored, the bank gives a' cheque refund letter' to the payee explaining that the payment has been rebounded. The test may be resubmitted by the payer if he suspects that the test should be resubmitted for the second time. If the check is rebounded again, the payee can lawfully sue the box.

Effective recourse required in the event of Cheque Bounce?


A legal notice / demand letter must be sent to him before filing a suit against the box. The letter must be submitted within 30 days of the date on which the bank returns the check, along with the confirmation that the verification is unsubstantiated.
In such a situation, you should take the help of a lawyer to write a legal document.

FILE A Legal Case

When the manager refuses to make the payment within 15 days from the date on which the notice was sent to him, the payee may bring legal proceedings against that person within 30 days from the date of expiry of the 15-day term given to the manager.

Required Documents

In fact, you will have the following records when filing a search bounce complaint:

1. The initial review.
2. Search out the memo.
3. Copy of the legal notice sent to the drawer requesting payment of the money.
4. Power of Attorney is represented by the claimant.
5. Preliminary proof in the form of an affidavit.

Replies to the Legal Notice

In the event that you get a legal notice for reimbursement of money in a check bounce situation, you will give a reply within 15 days from the date of receipt of the note. In response to the receipt, you will now give a check to the payee for the same amount as the previous payment. The reply must also state the reason for the cancelation of the test. If the response is not given within the time limit laid down, a legal action may be taken against you. 

However, if you do not have an unpaid debt to the person who sent the letter, you may note the same in your reply to the letter, which is to be submitted within 15 days.You can always take assistance of a lawyer who is an expert in this field 

What's Inclusive

(a) Counseling and contacting the counsel on a 30-minute conference call
(b) Draft Legal Notice. The advocate will share with you the draft legal notice for your approval.
(c) the issuance of the Legal Notice. If the document has been completed following the consent, the lawyer must forward the legal note to the registration office and send the tracking number.

What isn't included

(a) The filing of any case post which sends a legal notice is not included in this service.

You May Also Want To Know

1. What is the punishment for a test fail case?

The maximum sentence that can be levied on the accused in the event of a check bounce is 3 years in jail along with a fine that will run up to double the value of the check.

2. How long after the notification has been issued, may I file a lawsuit against the drawer?

A petition under section 138 of the Negotiable Instrument Act, 1881 can be lodged within 30 days from the date of expiry of 15 days from the date of notification to the cabinet, i.e. 45 days from the date of notification.

3. What will I do if the time limit for filing a lawsuit under section 138 expires?

If the time limit for filing a lawsuit under section 138 has expired, another recourse available in such a lawsuit is to file a summary claim for recovery of money or to begin criminal proceedings against the manager under section 420 of the IPC within 3 years of the date on which the search is released.

4. Which is the overview fit for money recovery?

Description action is a civil court case launched for the recovery of money owed under any signed deal, search, etc. Both cases are distinct from the usual restitution action, because in this case the duty to show that the plaintiff is not entitled to claim that amount falls on the claimant for which he must seek permission to appeal from the trial.

5. How would I do because I don't know the location of the drawer?

You need to know the address of the drawer and issue him a legal notice, in case you do not have any details about his current address, otherwise you should send a legal notice to the last known address.

6. When is the average time a test bounce event is resolved?

The estimated time to settle a search fail lawsuit depends on the district court in which you have filed the complaint. The responsibility of the case and the capacity of the court are considerations to be weighed. A test fail event will realistically take you anywhere from 1 to 2.5 years to complete.

7. What court will I bring in the case of a search bounce?

Pursuant to the Negotiable Instrument (Amendment) Act, 2015, a check bounce case can be brought before a court whose local jurisdiction is the bank to which the search is made.

8. Could I reimburse tax and court fees from the search drawer?

Yeah, you will recover interest and legal costs from the drawer of the dishonoured search in a summary claim for the recovery of property, but not in litigation brought under Section 138 N.I. Act. Act. Nonetheless, under Section 138 of the N.I. The bonus can be greater than the value of the test.

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