{"id":5727,"date":"2020-03-31T09:38:09","date_gmt":"2020-03-31T04:08:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5727"},"modified":"2025-02-13T16:58:26","modified_gmt":"2025-02-13T11:28:26","slug":"procedure-of-sending-a-legal-notice-for-cheque-bounce-online","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/","title":{"rendered":"How to Send a Legal Notice for Cheque Bounce?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">over the years we have observed a gradual shift from traditional money remittance methods like money orders, cash, Cheque etc. to online transactions, however, while carrying out a transaction of a large sum of money, transferring money through a cheque is still a preferred choice among many. Cheque serves as a secure option since hard cash is not involved during the transfer process. Hence the fear of loss or theft is minimized. Cheque is an essential element of the financial system in different countries across the globe. A cheque transaction is marked as one of the safest ways of steering business since it leaves an entry against the Cheque respected by the bank, which can be further tracked when necessary. While talking about Cheque, the first thing that strikes our subconscious mind is cheque bounce because we all at some point in our life must have heard this term. In this blog, we shall learn more about what is cheque bounce and how can you send a legal <a href=\"https:\/\/corpbiz.io\/cheque-bounce-notice\" title=\"Cheque Bounce Notice\"><strong>notice for cheque bounce<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#Parties_Involved_with_a_Cheque\" >Parties\nInvolved with a Cheque<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#What_is_a_Cheque_Bounce\" >What\nis a Cheque Bounce?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#How_to_Draft_a_Cheque_Bounce_Notice\" >How to Draft a Cheque Bounce Notice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#Key_requirements_for_Legal_Notice_for_Cheque_Bounce\" >Key\nrequirements for Legal Notice for Cheque Bounce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#The_Procedure_for_Cheque_Bounce_Notice\" >The\nProcedure for Cheque Bounce Notice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#Replying_a_Cheque_Bounce_Notice\" >Replying\na Cheque Bounce Notice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-sending-a-legal-notice-for-cheque-bounce-online\/#Take_Away\" >Take\nAway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Parties_Involved_with_a_Cheque\"><\/span>Parties\nInvolved with a Cheque<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>In a payment through Cheque, there are three parties involved for\non-track movement of money through a written piece of paper source. The three\nparties involved are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Drawer<\/strong><\/li>\n<\/ul>\n\n\n\n<p>He\/she is the customer or account holder who issues the Cheque.<\/p>\n\n\n\n<ul>\n<li><strong>Drawee<\/strong><\/li>\n<\/ul>\n\n\n\n<p>It is basically the bank on which the Cheque is drawn and is\ncalled the &#8216;Drawee&#8217;.<\/p>\n\n\n\n<ul>\n<li><strong>Payee<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The individual who is named in the Cheque for getting payment is\nknown as the &#8216;Payee&#8217;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Cheque_Bounce\"><\/span>What\nis a Cheque Bounce?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cheque bounce is basically a term used to define the unsuccessful processing of a dispensed <strong>cheque<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Cheque\"><strong>[1]<\/strong><\/a><\/sup> due to several reasons. Non-sufficient funds in the issuer&#8217;s account are one of the main reasons for a bounced cheque. Passing a fraud cheque can be illegal, and this crime can be aggravated depending on the amount and whether this action involves crossing state boundaries. Reasons for a Cheque Bounce<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"682\" height=\"366\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-71.png\" alt=\"Reasons for a Cheque Bounce\" class=\"wp-image-5728\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-71.png 682w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-71-300x161.png 300w\" sizes=\"(max-width: 682px) 100vw, 682px\" \/><\/figure><\/div>\n\n\n<p><strong><em>Some of the major reasons for cheque bounce that should be avoided\nare as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Insufficient Funds<\/strong><\/li>\n<\/ul>\n\n\n\n<p>In case your account lacks funds from which the Cheque is issued,\nthere is a very high probability of the Cheque resulting from bouncing.\nFurther, if a cheque bounces, the bank will levy a nominal penalty imposed on\nboth the parties- the issuer as well as the depositor. Later, the issuer has\nthe option to either issue a new cheque or resolve the issue with the receiver\nof the Cheque. The receiver of the Cheque can also start legal action against\nthe issuer for non-payment and cheque dishonour.<\/p>\n\n\n\n<ul>\n<li><strong>The wrong date mentioned on Cheques<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Most people consider the date as a small factor but can cause\nserious issues with your Cheque not getting processed. Any difference or\nproblem with a date would lead to cheque bounce. Typical issues that a cheque\nissue faces include disfigured or scribbled numbers. In case the date written\non Cheque has expired, then it inevitably gets dishonoured.<\/p>\n\n\n\n<ul>\n<li><strong>Mismatch of Signature<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This is one of the most common reasons for cheque bounce faced by\npeople while issuing cheques. In case the signature is mismatched or doesn&#8217;t\nmatch with the bank records, the issued Cheque will be tagged as a bounced\ncheque. Therefore, it advised signing the Cheque carefully.<\/p>\n\n\n\n<ul>\n<li><strong>Damaged Cheque<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Various banks across India don&#8217;t entertain disfigured cheques on\nwhich the details are not visible. Moreover, your Cheque is likely to bounce if\nit has lots of stains or marks.<\/p>\n\n\n\n<ul>\n<li><strong>Overwriting on Cheque<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Banks don&#8217;t accept any scribbling, correction, overwriting on a\ncheque. Such a cheque with overwriting would bounce immediately. It is advised\nto use a fresh cheque if any mistake occurs while filling the previous Cheque.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Draft_a_Cheque_Bounce_Notice\"><\/span>How to Draft a Cheque Bounce Notice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While drafting a Cheque bounce notice, one needs to be extra\ncautious. Since it is the intimation about future legal action, the notice\nneeds to be framed accordingly. Once the drafting is completed, it is required\nto take a print on a plain paper or on the letterhead of the business\nthereafter it is delivered to the cheque issuer. <\/p>\n\n\n\n<p><strong><em>Cheque bounce notice must contain the following:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Name of the cheque beneficiary,<\/li>\n\n\n\n<li>Name and address of the check issuer.<\/li>\n\n\n\n<li>The return date of the Cheque.<\/li>\n\n\n\n<li>Reasons for cheque return.<\/li>\n\n\n\n<li>Request made to check issuer for immediate alternate payment and<\/li>\n\n\n\n<li>If payments are not made accordingly, the drawer can approach the Court and file a criminal complaint under Section 138.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/corporate-frauds\/\">Corporate Frauds: A Comprehensive Study<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_requirements_for_Legal_Notice_for_Cheque_Bounce\"><\/span>Key\nrequirements for Legal Notice for Cheque Bounce <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are the key requirements for Cheque Bounce notice-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The first\ncondition is that the Cheque should be towards a specific liability. <\/li>\n\n\n\n<li>It should be\nwithin a validity period of 6 months.<\/li>\n\n\n\n<li>Due to\ninsufficient funds, the bank must have returned the Cheque.<\/li>\n\n\n\n<li>The notice should\nbe given within 30 days of cheque bounce.<\/li>\n\n\n\n<li>The drawer has\nfailed to make the payments within 15 days of Cheque bounce notice; legal\naction can be taken against him within 30 days. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Procedure_for_Cheque_Bounce_Notice\"><\/span>The\nProcedure for Cheque Bounce Notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The Drawee has to\nfirstly send a demand notice to the drawer within 30 days of return memo\nthrough a registered post. <\/li>\n\n\n\n<li>Once the notice\nis received, the drawer has to make the payment within 15 days.<\/li>\n\n\n\n<li>If the payments\nare not made, the Drawee has the right to lodge a complaint.&nbsp; <\/li>\n\n\n\n<li>Once the Court\nreceives a complaint, the accused will be summoned. <\/li>\n\n\n\n<li>The proceeding\nwill be initiated under Section 138 of the Negotiable Instrument Act.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Replying_a_Cheque_Bounce_Notice\"><\/span>Replying\na Cheque Bounce Notice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is important to reply to a <a href=\"https:\/\/corpbiz.io\/legal-notice\" title=\"Legal Notice\"><strong>legal notice<\/strong><\/a> since legal notice is an official document sent with respect to taking legal action against a person for non-payment of the amount mentioned in the Cheque. It is advised to consult a legal expert.<\/p>\n\n\n\n<p><strong><em>Once you receive a legal notice, you have the following options:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Either to provide\nthe payment or compensation that the sender has asked for, known as a\nsettlement.<\/li>\n\n\n\n<li>Or reply to the\nlegal notice defending yourself.<\/li>\n<\/ul>\n\n\n\n<p><strong><em>If you choose to reply to legal notice following pointers should\nbe kept in mind:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The reply of the\nlegal notice should be addressed to the lawyer of the person who sent you the\nlegal notice.<\/li>\n\n\n\n<li>Mention your\nname, address and description.<\/li>\n\n\n\n<li>List the facts of\nthe issues with relevant dates and time, along with refuting the allegations\nmade against you.<\/li>\n\n\n\n<li>Any of the claims\nmentioned in the legal notice should not be accepted.<\/li>\n\n\n\n<li>Provide a summary\nof your defence. <\/li>\n<\/ul>\n\n\n\n<p>Any legal notice for the dishonour of Cheque provides a time limit\nwithin which reply has to be sent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take\nAway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Banks across the country witness cheque bounce cases daily. Therefore in India, we have laws in place to help us handle cases of cheque bounce. There are various reasons as mentioned above, which may lead to a bounced cheque. Now when the Cheque bounces, the next step is to send a legal notice to the defaulter. It is advisable to hire an expert lawyer who will assist you in filing and drafting of legal advice for cheque bounce.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/steps-to-file-a-consumer-complaint-in-india\/\">Here are the Steps to File a Consumer Complaint in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>over the years we have observed a gradual shift from traditional money remittance methods like money orders, cash, Cheque etc. to online transactions, however, while carrying out a transaction of a large sum of money, transferring money through a cheque is still a preferred choice among many. Cheque serves as a secure option since hard [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":5731,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[272,342],"tags":[441],"acf":{"service_id":"283"},"authorName":"Shubham Chauhan","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/shubham-chauhan.jpg","authorDescription":"A passionate legal content writer, a nature enthusiast, an avid reader, and a part-time thinker. By means of conducting in-depth research on industry related topics, Shubham often builds flawless and intelligible legal content for populace from all walks of life.","postViews":19957,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5727"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5727"}],"version-history":[{"count":26,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5727\/revisions"}],"predecessor-version":[{"id":68708,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5727\/revisions\/68708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5731"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}