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Afraid of being scammed? Has your check bounced? Do the following to get it rectified:
1. Get the Bank Slip
When the bank can't process your cheque, they will give you a slip explaining why. This is called a "Cheque Return Memo". Make sure you get this slip from your bank.
2. Talk to the Person
Contact the person who gave you the cheque. Let them know that the cheque bounced. Sometimes, this might be a mistake, and they might fix it right away.
3. Send a Formal Notice
If the person doesn't solve the problem quickly, you need to send them a formal letter:
Write the Letter: In the letter, explain:
- The details of the cheque (like the amount and date).
- The reason the bank gave for the bounce.
- That they have 15 days to pay you the money.
Send the Letter: Mail this letter to the person using a method where you can get proof they received it, like registered mail or courier. Keep the receipt as proof.
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4. Wait for 15 Days
Give the person 15 days from the day they receive your letter to pay you the money. If they do, great! If not, move to the next step.
5. Go to Court
If the person doesn't pay within 15 days, you can take legal action:
- Find a Lawyer: Get help from a lawyer who knows about cheque bounce cases.
- File a Case: Your lawyer will help you file a case in the local court.
- Prepare Your Papers: You will need to give the court:
- The original bounced cheque.
- The bank slip (Cheque Return Memo).
- A copy of the letter you sent.
- Proof that the person received your letter (like the mail receipt).
6. Attend Court Sessions
Go to Court: You and your lawyer will need to go to court sessions. Your lawyer will speak for you, but you might need to be there sometimes.
Show Your Proof: Show the court all the papers and proof you have. The court will look at everything and make a decision.
7. Court's Decision
If the court decides in your favor, the person who gave you the cheque might have to:
- Pay a fine.
- Go to jail for up to two years.
- Both, pay a fine and go to jail.
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FAQs
FAQ 1: What should I do immediately if my cheque bounces?
Answer: First, obtain the "Cheque Return Memo" from your bank, which explains why the cheque couldn't be processed. Then, contact the person who issued the cheque to inform them of the issue and try to resolve it. If necessary, you can send a formal notice demanding payment within 15 days. For detailed steps, visit RBI's Guide on Handling Cheque Bounce.
FAQ 2: What legal actions can I take if the issuer doesn't pay within 15 days after my formal notice?
Answer: If the issuer doesn't pay within 15 days, you can take legal action by finding a lawyer, filing a case in the local court, and preparing necessary documents like the original bounced cheque, Cheque Return Memo, and proof of your formal notice. For more information, check the Indian Penal Code on Cheque Bounce.
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Reference:
Written by Arshita Anand
Arshita is a final year student at Chanakya National Law University, currently pursuing B.B.A. LL.B (Corporate Law Hons.). She is enthusiastic about Corporate Law, Taxation and Data Privacy, and has an entrepreneurial mindset
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Further Reading
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