Someone gave you a check and it bounced when deposited in the bank? Now you have not received the amount due to you and the person giving you the check is not even answering your calls? In such a situation, the check bounce law in India protects your rights. You can get your money back by taking legal action, but for this it is important that you follow the rules and deadlines properly. If even one deadline is missed, your opportunity may be lost.
What is Check Bounce Case Act?
There is a law in India against giving a bounced check to someone, which is actually considered a crime. This is called Section 138 of the Negotiable Instruments Act. It’s quite simple. If someone gave you a check and it bounced because they did not have sufficient funds in their account, you can take legal action against that person. A person convicted may face jail, a fine, or both. However, you will have to act fast, as this law imposes certain deadlines. If timely action is not taken, your rights may be lost.
What happens when a check bounces?
When you file a check bounce case in the court and the court finds the person guilty, the guilty person can go to jail. In this, a maximum punishment of up to 2 years may have to be served. He may have to pay a fine double the amount of the cheque. Or both i.e. jail and fine. Also understand one important thing, even if the person repays you later, he may still be punished. By the time the check bounces, the crime has already been committed.
What are the biggest mistakes people make
- Waiting too long: Some people think that I will send the notice next month. This is a bad idea. You only have 30 days. Don’t waste them.
- Writing wrong notice: There should be specific things written in your notice. Cheque number. Amount. Bounce date. If you forget these details, your case becomes weak.
- Losing important papers: Always keep a copy of everything. Check. Bank paper. The notice you sent. You will need all of this in court.
- Trying to do everything alone: These cases are a little difficult. One small mistake and you lose. It is wise to take help from a professional expert.
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