Background of the ”HOW” in how to file cheque bounce case
How to file a cheque bounce case properly can be tricky for a layman and so it is advisable to always take the assistance of a lawyer. Having said that, we all still need to have some background on this subject. Especially, to know your rights. Knowing the process enhances your knowledge, and also help in exercising your rights better. This article will talk about your rights in case you receive a bad cheque. It will further talk about how to file cheque bounce case as per the Laws of India in the simplest possible language. You will get a clarity on the concept and process.
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We need to know what is a cheque before we understand how to file cheque dishonour case:
If you have landed on this page, you already know what a cheque is. But, most people are not aware of the legal definition of a cheque. There is a difference between a promissory note, a bill of exchange and a cheque. The legal definition of a cheque also includes within its parameters the electronic image of a cheque. In this era of literally electronic everything, cheques could not have been left behind. Hence, our law makers took note of the same and added the same to the definition of a cheque. Coming back to the topic, let’s understand the legal definition of a cheque. It is, a bill of exchange, drawn on a specified banker and not expressed to be payable otherwise than on demand. Seems confusing right, also we need to know what a bill of exchange is in order to understand this definition.
Lawyers come to the rescue and save you from the hassle of understanding legal intricacies. To know everything about bills of exchange you can read the same here.
When and how to file:
Let’s take an example. I recieved a bad cheque. I need to know how to handle this situation legally. So, I will ensure the following at my end. I will have to become aware of the reason for dishonour. The bank will inform this reason. Otherwise, I can always call my bank to know the exact reason for dishonour. Once, the same is within my knowledge, I have the right to demand the payment of the cheque amount from the drawer of the cheque. Say, the drawer fails to pay the amount, other rights accrue in my favour. I can now file a case of cheque bounce against the person.
The period of imprisonment for the offence of cheque bounce is 2 years.
This is possible if I am able to prove his guilt in court in the case filed. Earlier the period of punishment was one year. Now, it is upto two year’s imprisonment. Cheques are one of the most-used methods of payment in today’s business world. A heavier punishment helps deter persons from giving out bad cheques. Also an in-depth knowledge of the types of cheques i.e, bearer cheque, crossed cheque, self, post-dated etc is required to fight the case.
Just knowing how to file a cheque bounce case and even filing a case is not enough, various factors play a part in winning a cheque bounce case. In order to get the best legal assistance to ensure that all legal formalities are complied with you can read more here. Discuss further with the best cheque bounce lawyer in Gurgaon.