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How to recover dues after a cheque bounce

A cheque bounce can be a frustrating experience for any business or individual. Not only does it cause inconvenience and delay in receiving payments, but it can also lead to financial losses. In such situations, it is important to know the proper steps to take in order to recover the dues owed to you. One of the legal remedies available in India for cheque bounce cases is Section 138 of the Negotiable Instruments Act, commonly known as the 138 cheque bounce provision.

When a cheque bounces due to insufficient funds in the account, the payee has the legal right to take action against the drawer of the cheque. Under Section 138 of the Negotiable Instruments Act, the payee can send a legal notice to the drawer within 30 days of the cheque bounce, demanding the payment of the dues along with any additional charges incurred due to the bounced cheque.

The legal notice must contain all the necessary details such as the reason for the notice, the amount owed, and a warning that legal action will be taken if the dues are not paid within a specified time period. It is important to ensure that the legal notice is sent through registered post or courier with acknowledgment due, as this will serve as proof that the notice was received by the drawer.

If the drawer fails to make the payment within 15 days of receiving the legal notice, the payee can proceed to file a criminal complaint under Section 138 of the Negotiable Instruments Act. The complaint must be filed within 30 days of the expiry of the 15-day period, and it must be accompanied by the original bounced cheque, the legal notice and proof of delivery, as well as any other relevant documents.

Once the complaint is filed, the drawer will be summoned to appear before the court. If the drawer fails to appear, the court may issue an arrest warrant against them. If the drawer is found guilty, they may be sentenced to imprisonment for a term of up to two years, or they may be ordered to pay a fine that is double the amount of the bounced cheque.

It is important to note that legal action should only be taken as a last resort, after all other attempts to recover the dues have failed. It is always advisable to try to resolve the issue amicably through negotiations or alternative dispute resolution methods before resorting to legal action.

In conclusion, recovering dues after a cheque bounce can be a complex and time-consuming process. However, by following the proper legal procedures under Section 138 of the Negotiable Instruments Act, payees can increase their chances of recovering the dues owed to them in a timely manner.

For more information visit:

Experienced Family & Criminal Lawyer in Mumbai & Navi Mumbai
https://www.advdharmendraassociates.in/

9920070267
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