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How to File a Cheque Bounce Case in Delhi – Lawyer’s Guide

Understanding a Bounced Check

A bounced check is one that cannot be completed because the account to which it is linked does not have enough funds to cover the transaction. In other words, the check cannot be processed since there is not enough money in the bank customer's account to cover the payment. When this occurs, the bank will mark the check as unpaid and may return it to the individual attempting to cash or deposit it. This circumstance may result in financial penalties for both the issuer and the recipient of the cheque. In such instances, consulting with the Best Cheque Bounce Lawyer in Delhi is critical to understanding your legal rights and taking proper action under the law.

Filing a Cheque Bounce Case in India

Check bouncing is considered a criminal offense under Section 138 of the Negotiable Instruments Act, which means that the person who was supposed to receive money (the payee) can take legal action against the cheque issuer by filing a complaint with the magistrate within 30 days of receiving the notice of bounced check.

You can register a complaint under Section 142, which specifies the procedure for filing a complaint in the event of cheque dishonor.

Step-by-Step Guide with insights from the Best Cheque Bounce Lawyer in Delhi

Present the cheque again

Before taking legal action, you may try to submit the cheque again while it is still valid. Sometimes the parties agree to resolve the situation mutually.

Obtain the cheque return memo

When the bank rejects a cheque, it issues a "Cheque Return Memo" explaining why it was not paid. This document is vital to the legal process.

Send a legal notice

You must send a legal demand notice to the cheque issuer within 30 days of receiving the return message. The notification should include:

• • Check details
• • Reason for dishonor
• • A demand to pay within 15 days

Legal notices should be carefully crafted; contacting the Best Cheque Bounce Lawyer in Delhi ensures correctness and ensures that you are progressing in the right direction.

Wait for fifteen days

If the drawer fails to react or pay within 15 days of receiving the notice, you may take legal action.

Make a complaint in court

After the 15-day notice period, you have an additional 30 days to bring a criminal complaint under section 138 of the Negotiable Instruments Act.

The complaint should include the following:

• • Copies of the check and return memo
• • Legal notice and postal receipt Proof of non-payment
• • An affidavit describing the facts of the case

Your lawyer will assist you in properly filing the Complaint, Affidavit, and Vakalatnama, which will increase your chances of victory.

The following four parties are involved in the procedure for filing a cheque bounce case.

1. Drawer: The drawer is the one who drafts the cheque and ensures that the bank (drawee) pays the precise amount of money to the payee.

2. Drawee: The drawee is usually a financial institution, such as a bank. When a check is delivered for a deposit, the bank acts as the drawee and is responsible for completing the payment.

3. Payee: The payee is the individual or entity mentioned on the cheque who is authorized to receive the money.

4. Payee's Bank: This is the financial institution in which the payee has an account. The payee can deposit the cheque into their bank account, and the payee's bank will collect the funds from the drawee and credit their account.

Conclusion

Dealing with a bounced check can be difficult, but the law provides a clear and legal path to justice. With the assistance of Nitin Shokeen, generally considered the Best Cheque Bounce Lawyer in Delhi, you can successfully traverse the legal terrain and guarantee your financial interests are safeguarded.

Don't put off dealing with a cheque dishonor issue. Legal deadlines are strict, and prompt action, guided by a qualified expert like Nitin Shokeen can make the difference.