Cheque Bounce Legal Notice-For Acceptance of Application

Cheque bounce legal notice are issued in matters where there is a failure of the acceptance of the instrument by the institution on which it has been drawn. There can be different reasons on the base of which it has been bounced.

There might be a question in your mind about the meaning of the cheque bounce so let me tell you that under the negotiable instrument act of 1881, it means when the payee presents the cheque and it returns with a memo by the bank mostly because of lacks funds, it is termed as the cheque bounce.

When is Cheque Bounce Legal Notice Issued?

A cheque bounce is an offense that is punishable under section 138 of the negotiable instrument act 1881 which states that it will be punishable with a fine that can extend to two times the offense or both.

There can be several reasons for the bouncing of the cheque but most frequently matters go to court when there is an insufficient amount in the account of the drawer of the cheque. When the bank rejects the cheque and returns it with a memo stating the reasons therein, in such situations payee can issue a legal notice format to the drawer demanding the cheque.

When you receive such recovery money legal notice format, read it carefully with all due caution, if there is something that you cannot understand in the content of the notice go and visit the office of the nearest advocate. The cheque bounce legal notice will contain all the details relating to the matter in which need to file the reply to legal notice.

The advocate will be of great help, you can file your reply to legal notice format by him, it is an important step in the cheque bounce case otherwise it can prove fatal to your case.

Situations under which legal notice for recovery of money can be issued in Cheque bounce?

There can be a variety of situations in which notice can be issued to the defaulter to showcase why not legal proceedings against him be initiated in case he does not pay the amount.

The legal notice says in very firm language that if the amount is not paid to the payee within a reasonable period from the issues notice than legal proceeding will be taken against him.

Let’s have a glance at when the legal notice format for recovery of money is issued.

• Insufficient funds in the account -  

When a cheque has been made intentionally against the bank account which does not have the sufficient amount and the bank rejects the instrument drawn over the payee can issue a cheque bounce legal notice to the defaulter. You can ask advocate legal notice format for this purpose.

• Expired negotiable instrument –

When a cheque is drawn it must be presented for cash within the period of three months. Your cheque will get expired if it is not given to the bank for payment within three months and the expired cheque will bounce. Instead of issuing legal notice format for recovery of salary, you can ask for a replacement of the cheque with a new date the in proper case.

• Overwriting on face –

When there is overwriting on the face of the cheque such as the amount statement or signature on the cheque is overwritten it will get a bounce.

• Not in good condition –

When you receive the cheque make sure it will be in safe custody. So that it will present in proper condition to the institution on which it has to be drawn.  If the cheque has stains and marks over it, it will be rejected by the bank. You will receive the cheque bounce legal notice.

• Mismatch of digits and amount-

If there is a mismatch of the amount and digits in the cheque it will bounce. Therefore, you need to pay attention to the details while drawing the cheque.

What could we do if cheques got bounced?

There are some remedies that you can use in case cheques get bounced let’s have a look at them.

Replacement of the cheque-

When the cheque bounces because of the overwritten statement, the signature got mismatched, figures and words got mismatched or your cheque got damaged. The payee of the instrument can ask the drawer to issue another in place the of previous one. A civil suit can be initiated for the amount due.

Issuance of instrument notice under section 138 –

The draft legal notice for recovery of money is issued under the section the of negotiable instrument act when a cheque got bounced because of insufficient funds. If your instrument got bounced because of any other issue you cannot send cheque bounce legal notice.

Notice Of Cheque Bounce –

The payee needs to send a legal notice within 30 days of receipt of intimation of the cheque being bounced because of a lack of funds.

After the receipt of the notice, a 15-day time must be given to the drawer. Even if the drawer does not reimburse the amount after 15 days, the legal proceeding can be initiated within 30 days from the expiry of a legal notice.

Procedure to Be Followed After the Legal Notice -

On the expiry of the 15-day payment legal notice format, the payee can initiate legal actions in a court of law. The payee of the cheque can in case of failure of legal notice for repayment of a loan or any other cause register complaint under section 138 of the NI act.

The cheque bounce legal notice is issued first, if you do not receive the reply to you can file a complaint because the bouncing of the cheque amounts to a criminal bounce. The complaint can be filed after 30 days on the expiry of the period of legal 15 days of the notice.

Jurisdiction in Cheque Bounce Matters -

Legal notice format India is used on the cheque bounce cases after those legal proceedings are initiated in the judicial platform of appropriate jurisdictions, let’s have look at a court complex in which a suit for cheque bounce can be filed.

The complaint can be filled before the judicial magistrate in the following places:

• ​​​​​The place at which the cheque had been drawn or
• The place where the cheque was presented for the payment or
• The place where payment had to be made or
• Where the cheque had been dishonoured or
• The place in which demand notice had been served

The cheque bounce legal notice case must be filed before the Metropolitan magistrate if, for instance, your legal notice to company format failed.

Process In Suits Of Cheque Bounce

The process to be followed in case of cheque bounce suits is mentioned below in points –

• When receiving the memo of cheque bounce you need to file the legal notice of the same to the defaulter.
• After that you need to wait for 15 days on the expiry of the period.
• You can file the case of your before the magistrate within 30 days of the expiration 15 days.
• The payee has to appear before the court and provide the details of the cheque bounce legal notice.
• On being satisfied with the details of the case and statements of the complaint, the summons to the drawer of the instrument will be issued.
• The drawer of the cheque will make his appearances before the court and accept or reject the suit as the case may be.
• When the drawer denies the facts or fails to satisfy the court proceeding of criminal nature will be started against him.
• Then filing of submissions before the court in the form of statements and evidence will be done.
• On being found guilty the court will pass judgment.

The punishment for a cheque bounce legal notice case will be imprisonment for a term not more than two years or a fine which can be extended to twice the amount of your cheque, or it can be both.

What will be the Cheque bounce format for the recovery of money?

If you are looking for a legal notice format for recovery of money pdf it will be made available to you by the online platforms. The cheque bounce is also a case of money recovery.

Here we will go have some basics of the legal notice, if you are wondering what is legal notice then let you know that it is the document that is issued to the person who is at default by the aggrieved person.

In the matter against which the sender of the notice is going to file the suit if negotiations or proper course of action to reverse the default is not taken on time.

The cheque bounce legal notice will contain the following elements do check them out below –

• Name and address of the person who is sending the notice, through the registered advocate.
• Name and address of the receiver of the notice
• The number of cheques that got bounced in the body of the notice.
• Brief of the matter and the claims must be put therein.
• Reason for the cheque bounce with the receipt of the memo sent by the bank.
• Date on which the cheque was made by the drawer of the bank.
• Date on which cheque is made for the payment before the banking institution. To make sure that it was presented before the expiration period, in case of cheque bounce legal notice.
• The legal provisions concerning the matter in which the defaulter will be punished accordingly.
• Firm statement in which legal proceeding intimidation is given, that if the appropriate action is not taken within 15 days of the receipt of the legal notice then you will be taken into a court of law
• The signature of the advocate with the name and signature of the sender of the notice.

This is what legal notice in India contains basically.

Sample legal notice for recovery of money –

By the registered Advocate

Office address

Place -----

Date: DD/MM/YY

Subject: legal notice format under section 138 for the dishonor of cheque.

To,

Mr. ABC

Address -----

Place ------

Respected Sir /Madam

Under the instruction of my client and on his behalf this legal notice is being served upon you.

• That my client is a private company which is doing the business of computer parts for -------a number of years.
• That in -------the month of ------year on --------date you had approached by the client through the telephonic call for the place of peripheral computer items.
• That , order purchase is of --------amount.
• That you have promised my client that order payment will be done in the cheque. To which he had agreed.
• That, the payment had been made by you in the cheque which bears the date ------- (to be mentioned in cheque bounce legal notice )
• The cheque number is -------------
• That, my client on you dispatches the order at your place with-------invoice number on --------date.
• The cheque drawn by you contain the ------------amount toward the payment of invoice.
• t, my client go shocked when the cheque got rejected by the bank which is presented on -----------date before the bank.
• The memo dated ---------issued by the bank contains the statement of insufficient funds.
• That, despite many telephonic phone calls and emails there is no response from your side, therefore my client had issued directions to me to serve legal notice upon you with section 138 of the cheque bounce.

If no proper remedy is provided to the cause within fifteen days of the receipt of the legal notice, the matter will be taken before the court of appropriate jurisdiction.

The copy of the cheque bounce legal notice is kept by me in my office for future use in future.

 Your friend ---------

 Through advocate ------

Signature of the sender

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