What to Do After Cheque Bounce Notice

Your Guide to Steps After Cheque Bounce Notice

Understanding cheque bounce notice in India and common mistakes after receiving notice

Cheque bounce notices are intimidating because they are not friendly payment reminders. They are statutory demands under Section 138 NI Act and the next few days after receiving notice decide whether you settle, reply defensively or let the complainant file a criminal complaint at Magistrate Court.

Many panick after receiving cheque bounce notice and admit on phone calls. Others ignore it thinking it’s a pressure tactic. Some draft an emotional one-page reply without verifying cheque details, bank memo, nature of debt, limitation or scope of settlement. These mistakes can haunt your cheque bounce matter for long.

Typically the drawer has 15 days from notice receipt to make payment. Otherwise, complainant can file Section 138 complaint against you subject to certain legal conditions. Hence it becomes important to review your documents ASAP.

Act wisely if notice is received in Delhi NCR, Noida, Ghaziabad, Gurugram, Faridabad, Meerut, Lucknow, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata or any Indian City. The 1st step after receiving cheque bounce notice should be to calm down. Collect all relevant documents and review cheque number, bank memo, debit side of account, history of debt or loan, complainant’s claim and legal limitation. Avoid reacting on phone calls or emails. Contact Advocate BK Singh to know what defenses you have against cheque bounce notice.

Effects of cheque bounce notice on routine life & business 

Cheque bounce notice can impact your finances, peace of mind, future business transactions and reputation. For a salaried individual, it may create fear of arrest and criminal case. For businessmen, it may impact vendor payments, credit terms and market reputation. For company directors or authorised signatories, it may attract questions of personal liability and board minute verification.

Since cheques are relied upon daily for commercial trust, law takes cheque dishonour seriously. However, every cheque bounce notice can’t lead to conviction. Cheque bounce complainant must prove all conditions, and the drawer may have factual/legal defenses based on facts.

Most clients come very late to Advocate BK Singh after they get summons. That wastes valuable time. It’s better to assess your position once you receive cheque bounce notice. Should you pay, settle, reply to notice, deny liability or start preparing your defense? Decide quickly and take informed action.

You can consult Cheque Bounce Lawyer to review Notice and Explore Defense Options

A cheque bounce notice is issued when your cheque gets dishonoured by bank for reasons like non-sufficient funds (NBFC), account closed, signature mismatch, etc. Issuer of the bounced cheque sends a statutory notice to drawer warning of Cheque dishonour Action under Section 138 NI Act. Cheque bounce notice gives drawer 15 days to make good the payment and avoid legal proceedings.

As noted earlier, take a deep breath and assess your position before acting. Mismatches can be found even if notice looks legit at first glance. Look for notice date, cheque number, cheque amount, date, bank memo reasons, notice amount asked, notice sender details, liability claimed and cheque received date. Share copy of notice with Advocate BK Singh to know if you need to reply.

Section 139 creates presumption in favour of complainant holding the bounced cheque. However such presumption can be rebutted by defending party with admissible evidence. Legal defenses to cheque bounce are vast and depend on facts. For e.g. cheque was not for debt/liability, issued as security, misused by holder, filled out incorrectly without drawer’s permission, already paid, notice defective, limitation expired, complainant is not proper person to receive payment, company liability conditions not fulfilled, drawer had no role in issuance, facts in notice are incorrect, etc.

Cheque bounce complaint is filed at Judicial Magistrate or Metropolitan Magistrate Courts. Most judges encourage compromise because cheque bounce is a compoundable offence. Advocate BK Singh has handled both complainant-side cheque recovery cases as well as defence for drawer against false NI Act cases.

Consult Cheque Bounce Lawyer Guide to Understand Court Proceedings in Cheque Bounce Cases

Do you really need to reply to cheque bounce notice?

Reply to cheque bounce creates your first defence on record. However courts are aware that many people get notices from lawyers threatening wrongful prosecution. Hence if you decide to remain silent, court may not infer guilt on face value.

Sample Cheque Bounce Notice Reply by Advocate BK Singh balances legally protecting your position, while not harming settlement options.

Sending second set of legal documents to a lawyer who helped you earlier is expensive. However ChequeBounceLawyer.com lets you refer your case paper details for 2nd opinion free of cost. Please make use of this facility before sending important documents to any lawyer.

If cheque was issued as security cheque, include copy of agreement or communication where it was mentioned as security. If paid, include bank record of payment. If cheque was lost or stolen and misused by someone else, preserve complaint copy to bank/police and any related communications. If filled out without your permission and signed, preserve evidence of that fact.

If company cheque was bounced, share Board resolutions approving signatory, cheque signing details and internal communication with complainant. Advocate BK Singh reviews all these documents before advising on cheque bounce notice.

Mistakes to avoid after receiving cheque bounce notice

Should I ignore Cheque Bounce Notice?

Ignoring cheque bounce notice may lead to Cheque bounce complaint, summons, arrest on bail, court trial, legal hassles and loss of reputation. Businessmen also face issues in supplier payments and credit reputation if notice is from vendor.

Since companies have multiple signatories, notice becomes more troublesome for directors if complaint names all signatories. Liability is different for different roles. Conditions of company liability also needs to be fulfilled by complainant.

Responding to notice does not guarantee case will be settled or blocked. But at least you will have more control over situation. Advocate BK Singh can review your cheque bounce notice to see if urgent payment, notice reply, negotiation or defense is required.

You are a director, partner, owner, proprietor, employee who signed cheques, authorized person or family member named in notice. All these positions require careful individual analysis.

Advocate BK Singh has handled hundreds of cheque bounce notice cases. He offers free advice on whether you should respond to notice, or ignore it. If responding, he can review facts to send professionally written reply. He also supports negotiation and settlement to avoid court hassles. Further he offers accused-side defense in false cheque bounce cases.

How Cheque Bounce Lawyer can Guide you in Cheque Bounce Notice

ChequeBounceLawyer.com offers clients support in Notice Review, Reply Drafting, Cheque Bounce Complaint Drafting, Accused Defence in Cheque Cases, Settlement & Compounding, Negotiations and Court Appearance.

Advocate BK Singh focuses on right legal solution for each client. Sometimes cases require aggressive defense. Sometimes accused needs to negotiate payment. Sometimes falsified claims are to be corrected by filing complaint. Sometimes complaints need to be filed at priority because limitation expires in few days.

In case you are located in Delhi or around Delhi, you can also access Cheque Bounce Lawyers in Delhi

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