The cheque issued to me has bounced, what do I do?
This is the most comman legal problem we all face and we all get in a case of panic and helplessness when we get intimation from the bank that the cheque which was deposited by us has bounced. Before going to the legal remedy and the law, let us understand what cheque bouncing is :
“The cheque bounce in normal terms means the returning of cheque by the bank to which it is deposisted due to either lack of fund in the persons account from which the amount had to be paid or the cheque amounts exceeds the amount which the contract between the customer and bank allows.”
Now the question arises, what the person should do..
1) Within 30 days from the issue of intimation by the bank issue a notice to the person who issued the cheque to make the payment of the amount.
2) If the person fails to make the payment within 15 days from the receipt of such notice file a complaint under 138 of negotiable instruments act within 30 days.
3) Consult a lawyer to file a complaint
The relief which the person can get is either twice the amount of the cheque money or imprisonment of the person for 2 years who issued the cheque