CHEQUE BOUNCE-RESOLVED LEGALLY OR FACE CHEQUE MATE!!!

Even you have taken all practical defenses, a bad cheque will sometimes pass away from your system. Reason behind bad cheque is insufficient fund, or if the account has been deleted or closed.  There are numerous answers that apply initially to bad cheque by individuals including calling the customer, sending a certified letter, or contacting the bank.

Bounced cheque is a taboo in the financial transaction or for the cheque that cannot be processed because of insufficient fund.

But in this hectic and busy life it is very difficult to get a good lawyer to solve this problem there is legal resolved to provide you top advocate for cheque bounce in Bangalore.

Instances of bad cheque are frequent in today time. In most of the matter be it re-payment of loan or compensation of fees for commercial purpose, payments are made by cheque these cheque holding large amount remain unpaid and are return by the bank on which they are drawn. For such cases punishment is provided in section 138 of negotiable instrument act, 1881.

In order to construct and say that an offence under Section 138 of the Negotiable Instruments Act, the following situations must be fulfilled:

  • Presence of a ‘live account’ is an essential condition which should be in survival at the time at which the cheque is drawn, in order to attract the provisions of Section 138.The cheque should have been given by the drawer to get rid  of a  debt or legal liability
  • The cheque should be given to the bank by the holder of such cheque within six months from the date mentioned on the same the latest directive of the Reserve Bank of India provides that the validity of a cheque has been reduced to three months.
  • The bank should have returned the cheque unpaid on the ground that the money in the account of the drawer is insufficient, or exceeds the credit arrangement so extended by the bank to the drawer. The Supreme Court has given an extended meaning to this in the broadest possible sense.
  • The payee or the holder in due course, as the case may be, must within thirty days from the date on which the bank has returned the cheque unpaid, initiate a request on the drawer for the amount of the cheque in writing.
  • The drawer afterward should fail to make the compensation of the amount of the cheque to the payee or the holder in due course, within a period of 15 days from the receipt of the above mentioned demand.
  • The payee within limited time is instructed to file a complaint (criminal) in time frame of period of one month from the expiry of the above mentioned period of 15 days (Legal Era).

The addition of the statutes proscribing the cases of cheque bouncing was done with to deter people from dishonoring cheque and to safeguard reliability of cheque. But with pending of an approx. 4 million cases and limited time frame for winding up of these cases being 2-3 years, the attempt is resulting to be a letdown. So, penalizing the dishonoring of cheque bounce has not proved to be successful when it comes to our legal system. Clearly the policymakers did not take into consideration the financial crisis involved in the whole exercise.

So we come to the root of this question- what is the solution? Should we accelerate towards the civil suits for enforcing post-dated cheque and to the Indian Penal Code for criminalizing the drawer of a bad Cheque?

 Do we really needlaw in the Negotiable Instruments Act to criminalize cheque- bouncing?

So due to lots of complexities and chaos it is always better to switch to the simple and hassle free solution that we provide under legal resolved by providing best lawyer for cheque bounce in Bangalore.

 

jake Author

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