If Your Check Bounces in India, What to Do?
People in India still use checks a lot to pay for things, whether it's for business, paying back a loan, or personal matters. What happens, though, if a check you deposit is not honored? Under Section 138 of the Negotiable Instruments Act, 1881, a bounced check can have serious legal consequences.
Advocate BK Singh runs Cheque Bounce Lawyer, which helps both the people who complain and the people who are accused handle check bounce cases well. This guide tells you what to do if your check bounces, what your legal rights are, and how our firm helps middle-class people and small businesses with these kinds of problems.
Why Checks Don't Work in India
There are a number of reasons why checks can bounce:
The drawer's account doesn't have enough money.
A signature that doesn't match or is overwritten.
The bank closed or froze the account.
The drawer has given stop payment instructions.
Technical problems, such as a wrong date or a broken check.
For example, Ravi, who owns a small store in Ghaziabad, put a check for ?150,000 from a supplier into his bank account. The check was not honored because there wasn't enough money in the account. Ravi could have lost his hard-earned money if he didn't take the right legal steps. With Advocate BK Singh's help, he sent a legal notice on time and later got his money back through the courts.
What to Do Right Away if Your Check Bounces
Get the Bank Memo.
If a check bounces, the bank sends out a Check Return Memo with the reason. This document is very important evidence, so keep it safe.
Get in touch with the Drawer.
Sometimes, a bounced check is just a mistake. Contact the drawer and ask for payment or a new check.
Send a Legal Notice
You have 30 days from the date of dishonor to send a legal demand notice if the loan is not paid back. Advocate BK Singh and his team at Cheque Bounce Lawyer write strong notices that often make the other party settle quickly.
Bring a Case Under Section 138
You can file a criminal complaint in court if the drawer doesn't pay within 15 days of getting notice.
Go after civil recovery (if you need to).
You can also file a civil suit to get your money back with interest, in addition to criminal charges.
What Happens Legally to the Drawer
If you are found guilty under Section 138 of the NI Act, the court may do the following:
Up to two years in prison, or
You could get fined up to twice the amount of the check, or both.
If experienced lawyers like Advocate BK Singh handle them correctly, these cases can be very helpful for getting money back.
What a Check Bounce Lawyer Can Do for You
At Cheque Bounce Lawyer, we help our clients with:
Writing and sending notices that are legal.
Filing complaints in the right court.
Defending people who are accused with strong arguments, like showing that the check was given as security.
Negotiating friendly agreements to save time and money.
Helping middle-class people and small business owners who often have the most trouble with bounced checks get legal help at a price they can afford.
A vendor said that a start-up in Bengaluru bounced a check. Our defense showed that the check was only a security check and not a legally binding debt. The case was thrown out, which meant the founders wouldn't have to go to jail.
Reviews from Clients
*****
Amit Khanna, Delhi
"I was worried about delays when my tenant's rent check bounced." Advocate BK Singh's legal notice got the payment cleared in less than a month.
*****
Sunita Desai, from Pune
"I was wrongfully accused in a case of a bounced check. The lawyer for the bounced check did a great job of defending me and showing that the check was used wrong. "I really felt safe."
*****
Rakesh Agarwal from Jaipur
"Running a small business, a bounced check for ?3 lakhs almost put me out of business." This law firm helped me get my money back and feel better about myself.
*****
Farhan Siddiqui, from Lucknow
"I didn't know anything about the laws about bounced checks. Advocate BK Singh was very patient and professional when he explained everything to me and handled my case." Very highly recommended."
*****
Megha Sharma, Bengaluru
"Cheque Bounce Lawyer helped me with everything from writing the notice to settling the case." They really get what it's like to be a middle-class client.
?FAQs
Q1: What happens in India if a check bounces?
Ans: The person who owes the money can send a legal notice and, if they don't pay, file a case under Section 138 of the NI Act. The drawer could go to jail or pay a fine.
Q2: If the check bounces, can I present it again?
Yes, as long as the check is still good (usually for three months). But once you send a notice, you have to follow the law.
Q3. What do I need to do to file a check bounce case in India?
Ans: With the help of a lawyer, file a complaint in the court that has jurisdiction. Include the check, the return memo, and proof of notice.
Q4. Is it a crime to bounce a check?
Yes, it is a crime under Section 138 of the NI Act, and you could go to jail or pay a fine.
Q5: How long do you have to give notice after a check bounces?
Ans: You have 30 days from the day you get the bank return memo to send a legal notice.
Q6. After filing, can I take back a case of a bounced check?
Yes, if both sides agree, the person who filed the complaint can drop the case after a settlement.
Q7. What if the check was only given as a promise?
Ans: If proven, courts may throw out the case because it wasn't about a debt that could be enforced by law.
Q8. How long does it take to settle a case about a bounced check?
It could take anywhere from 6 months to 2 years, depending on how busy the court is. But settlements can go much faster.
Q9. Is it possible for a company director to be responsible for a bounced check?
Yes, directors who sign the check or are in charge of the company's business can be held responsible.
Q10. What makes Advocate BK Singh a good choice for cases of bounced checks?
Answer: He is a good choice for both filing and defense because he is knowledgeable, affordable, and has worked with middle-class and small business clients before.
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