#Lawyer for Cheque Bounce in Ranchi

[amitsinhavidhi]

What Are The Charges In Case Of A Cheque Bounce?

A cheque turns into a bounced cheque when, on presenting the cheque, the bank returns it because of any number of anomalies in it. The possible reasons for a cheque bounce are:

a. Lack of funds

b. The cheque amount exceeds the payer’s account balance

When the payer issues a cheque in the name of the payee and the payee, in turn, presents the cheque to the bank, the payee’s bank sends the cheque for clearing to the payer’s bank only to find out that there is a lack of funds in the payer’s account then, in that case, the cheque would bounce. However, the payer would be penalized for issuing a bo are penalties that the payer would have to bear for issuing a bogus cheque knowingly or unknowingly.

Notice of Cheque Bounce

If a cheque deposit has been made and the cheque has bounced then a ‘demand notice’ or a sort of a ‘show cause’ ought to be sent to the payer intimidating the payer with legal action under the Negotiable Instruments Act (NI Act) if the due amount remains unpaid.

Once the payer feels intimidated and knows prosecution looms and lurks prompt settlement usually ensues. If an individual is a drawer, a lawsuit can be filed under Section 138 of the NI Act. A company can be a drawer too and in that case, the managing director is liable to be prosecuted under Section 141.

The demand notice ought to be sent within a month from the date the drawee finds out that the cheque issued bounced. The purpose of the demand notice is to demand payment and intimate the drawer that prosecution is imminent if the drawee does not receive a payment within a fortnight.

A lawyer necessarily needs not to send the demand notice but the drawee could have the notice vetted by a lawyer for a fee. Once a dispute reaches trial the notice in most cases is the crux of heated arguments and indeed the bone of contention.

Bank Penalty

If insufficient funds are the reason for a cheque bounce or if there is some sort of technical reason like a mismatch of signature the defaulter and the payee alike would be penalized by their banks both for cheque outward and inward returns. The penalty charges differ from bank to bank and are different with varied account types. The penalty charges are comparatively higher on the Premium accounts in particular.

Impact on CIBIL Score

There could be an adverse effect on the drawee’s financial credit history of a drawee as a result of a bounced cheque. Just one bounce and its enough to adversely affect one’s CIBIL score irretrievably resulting in denial of a loan later on. A CIBIL score is undeniably harmful or detrimental for one’s business as it will affect one’s chemistry with the investors or the banks when one approaches them for one’s loan.

The best practice of ensuring a healthy CIBIL score is ensuring one’s cheques don’t ever bounce and that the drawer has adequate funds more than the minimum balance so that after encashment of the cheque there is still balance in the drawer’s account.

Connect to Vidhikarya’s registered expert cheque bounce lawyers for further legal advice in this regard.

[amitsinhavidhi]

Consult with Top Expert Lawyers on Cheque Bounce. Easy connect with Lawyers on Vidhikarya. Quick Phone Consultation and Get Free Legal Advice Online on Cheque Bounce. Best Cheque Bounce Lawyers in Ranchi.