How to Send Reply to Cheque Bounce Notice?

Cheque bounce is regulated under section 138 of the Negotiable Instruments Act of 1881. It occurs when the cheque is presented to the bank for payment and is returned due to insufficient funds in the drawer’s account. The second reason can be that the signature on the cheque does not match the drawer’s signature or other reasons. 

The reply to the Cheque bounce notice must be as per the following points:

• The reply must be sent within 15 days from the date of receiving the notice. 
• A cheque in favour of the payee should be sent like the previous cheque. 
• The reply must specify the dishonour of the cheque.
• The reply to the notice must include the date and address of the sender.
• The relevant sections under which the notice is sent are required.
• The signature of the advocate and the party sending the reply is required.
• If the reply is not made in the prescribed time, then legal action is taken against the person.
• The professional advocate’s assistance can be taken for drafting the reply to the notice.
• The contact information of the sender should be mentioned.
• While sending the reply, check if the claim in the notice is time-barred or not. If the claim is time-barred then the reply is not within the limitation period.

The documents required for filing a complaint of Cheque bounce are:

• Original cheque
• Cheque returning Memo
• Copy of legal notice sent to the drawer demanding the payment of money
• Power of attorney i.e., signed by the complainant
• Preliminary evidence in Affidavit

The reasons for the Cheque bounce are discussed below:

• Insufficient funds in the drawer’s account
• Unmatched signature on the cheque
• The date mentioned on the cheque has not yet come.
• Cheque presented to the bank three months after the issue date
• If the drawer asks the bank to stop the payment for a cheque already issued
• Difference in amount 
• A damaged cheque is torn or damaged, or the details are not visible.
• The legal remedies against the drawer are a notice that can be sent to him within thirty days from the date on which the bank returns the dishonoured cheque. 
• If the payment is not made within fifteen days from the date on which the notice is sent to him, then the payee can take legal action against the drawer within thirty days from the date of expiry of the fifteen days.

Conclusion

Section 138 of the Negotiable Instrument Act has provided the time limit for a reply to a cheque bounce notice within fifteen days of receiving the notice.

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