Lead India

 With a sudden increase in industrialisation, business transactions take place widely  with payments through cheques. As mode of payment through cheques is widely used, so has the number of cases reporting the cheque dishonour and cheque bounce, which have resulted in the need to criminalise the offence of cheque bounce or dishonour. Therefore, in the year 1988, criminalisation of the written cheques was introduced in the Negotiable Instruments Act, 1881. What is Cheque Bounce ? After the bank returns any cheque unpaid due to an insufficiency of funds in the account of the  drawer and for certain other reasons, the cheque shall be called as bounced. It could also be referred to as cheque dishonour, as it is a dishonour of payment by the drawer due to some reason. The one who issues a cheque is Drawer , while the one in whose favour the cheque has been  issued is the Drawee. Reasons for a Cheque Bounce ? After a cheque gets bounced, the respective B...

In the financial world, cheque is an instrument used during the business transactions, it is termed as a negotiable instrument to transport money in the physical form or for inter-account transfer. Cheque Bounce : is a term which is used to define the unsuccessful processing of a cheque, which could be due to various reasons. One of the primary reasons for the cheque bounce is Non-sufficient Funds (NFS). The banks return or dishonour the cheques apart from imposing a particular charge, these cheques are also known as Rubber Cheques. Legal Notice for a cheque bounce- A legal notice for cheque bounce is generally sent by the advocate on behalf of his/her client as a result of the non- payment of the cheque. Sending a legal notice implies that the beneficiary of the cheque would proceed with a legal action if the payment for the cheque is not done immediately. To issue a legal notice for cheque bounce the following conditions should be there- The should be issue...

Because they owe the Payee money, the Drawer issues a cheque in their name. After that, the Payee/Holder of the Cheque deposits it at the bank where he has an account or another location. The cheque must be deposited on or after the date indicated on the cheque, but not more than 30 days after that date, or it will become void. The "Cheque Return Memo" is sent to the Payee's banker if the Drawee realizes that it is unable to pay the amount specified in the Cheque after depositing it in the account. Then, the Payee's banker notifies him via a "Cheque Return Memo" that the cheque has been dishonored. Dishonor of a Cheque is defined as the Drawer's inability to pay the Payee the full amount of the Cheque on the Due Date or at the Time of Submission or Deposit. If the Drawee Bank discovers that it is impossible to pay the Payee's bank the full amount of the Cheque for whatever reason, the Drawee Bank promptly sends the Payee's banker a "Cheque R...

If Check Bounce Then the bank returns it to the drawer unpaid for a variety of reasons, including insufficient money. They are also known as "dishonored cheques or cheque case . " For a variety of reasons, the payment made by the drawer to the drawee is dishonorable. According to the law, the person writing the cheque is known as the drawer, and the person receiving the payment is known as the drawee. The Act also contains the meaning of "cheque" as stated in section 6. A bill of exchange drawn on a specific banker that is not immediately payable elsewhere is referred to as a cheque . In a bank, it is a drawer's or depositor's order. The drawer, drawee, and payee are the three parties to a cheque. The cheque has a three-month expiration date that is predetermined. This implies that any cheque may expire or become void as of the date of issuance. Some crucial actions to take in the event of false cheque bounce case : Unfortunately, those who are charged wi...