Overview

A notice of cheque bounce is a legal notice that is sent by the payee (the person who was supposed to receive payment) to the drawer (the person who wrote the cheque) in case the cheque that was issued to them bounces due to insufficient funds or any other reason. The notice of cheque bounce is sent to the drawer of the cheque to inform them that the cheque they had issued has bounced, and to demand payment of the amount that was due.

Essential Clauses

The notice should contain the following clauses:

• : The name and address of the payee
• : The name and address of the drawer
• : The date and amount of the cheque that bounced
• : The reason for the bounce, if known
• : A demand for payment of the amount due, along with any interest and penalty charges that may apply
• : A warning that legal action may be taken if payment is not received within a specified period of time.

Benefits

• Legal compliance: A notice for cheque bounce is a legal requirement under Section 138 of the Negotiable Instruments Act, 1881. Sending out such a notice ensures that the payee of the dishonored cheque complies with the legal formalities, and gives the drawer an opportunity to make the payment due.
• Reminder to the drawer: Sometimes, a cheque may bounce due to an oversight or a mistake by the drawer, and not due to any fraudulent intent. Sending out a notice for cheque bounce can serve as a reminder to the drawer to make the payment due, and can help resolve the matter amicably.
• Evidence: A notice for cheque bounce can serve as evidence of the payee's demand for payment, in case legal proceedings are initiated later on. The notice should be sent by registered post with acknowledgement due, and should contain all the necessary details such as the reason for the notice, the amount due, and the demand for payment within 15 days of receipt of the notice.
• Compounding: Sending out a notice for cheque bounce can also help facilitate the process of compounding, which is a settlement between the parties without going through a full trial. If the drawer of the dishonored cheque agrees to pay the amount due, the parties can enter into a compromise and settle the matter, subject to the payment of a certain amount as compensation.

Why approach LAWYASA?

• Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
• Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
• Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
• Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
• Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and we will keep you informed throughout the entire legal process.

How can LAWYASA assist?

Lawyasa can assist you in drafting a notice of cheque bounce in the following ways:

• Legal expertise: Our team of experienced lawyers can provide you with legal advice on the legal requirements and formalities involved in sending out a notice of cheque bounce. We can help you draft a notice that is compliant with the requirements of the Negotiable Instruments Act, 1881, and that contains all the necessary details.
• Customized drafting: We can draft a notice of cheque bounce that is tailored to your specific case, taking into account the facts and circumstances of the dishonored cheque, the amount due, and the details of the parties involved.
• Review and editing: If you have already drafted a notice of cheque bounce, we can review and edit the notice to ensure that it meets the legal requirements and is effective in demanding payment from the drawer of the dishonoured cheque.
• Delivery of notice: Once the notice of cheque bounce is drafted, we can assist you in delivering the notice to the drawer of the dishonoured cheque. We can help you ensure that the notice is delivered in accordance with the legal requirements, such as by registered post with acknowledgment due.

Frequently Asked Questions