How to Deal with Cheque Bounce Case?

In many countries around the world, checks are an essential part of the money system. A check is an important piece of paper that can be used by anyone, including the government, to pay for things with multiple amounts.

A check is another name for a negotiable document that can be used to send money physically or even between accounts. 

A well-known businessman who had opened branches of his brand in many cities across India was falsely accused of a check bounce case by a bank.

He was also charged a considerable amount. But he quickly made the right choice without taking too much time to think about how his reputation was being hurt. He got together all the necessary papers and files. 

He got in touch with a lawyer to file a legal notice within 30 days. Since the charge against him was false, it wasn’t hard for the bank to be shown to be guilty. 

So let’s say he didn’t act quickly and didn’t turn in the notice on time, that is, within 30 days of getting the notice from the bank. He might have been given a warrant in that case. 

He would also have to pay the amount for the fake check that bounced. People who are accused of these things usually lose their reputations and go to jail or lose their freedom. 

It could be a mistake on the part of the bank or the person who deposited the check. However, sometimes, it’s done to hurt the reputation and standing of the person who received the check in the market. 

If a fake check bounce case also makes you look bad, or if you just want to know what happens in the real world, this blog is for you.

The basic definition of a check and a “check bounce” is the first thing that is covered. Next is what you can do (other than freaking out and panicking) if you ever find yourself in this situation. 

Before you can write a fake check bounce, you need to know what a check is, what a check bounce is, and why a check bounces. 

In many countries around the world, checks are an essential part of the money system. A check is a necessary piece of paper that can be used by anyone, including the government, to pay for things with multiple amounts. 

A check is another name for a negotiable document that can be used to send money physically or even between accounts.

What is Cheque Bounce?

A “check bounce” means that the process of putting checks in the bank has not yet been completed. It could be because of a number of things: 

Since there aren’t enough funds in the issuer’s account, they should be aware and careful when writing a check to make sure that the account has enough money in it. 

The bank can reject the check if the date written on it is scribbled or if it is three months past the current date.

When the signature doesn’t match what the bank has on file. 

There is a difference between the amounts that are written in words and numbers. 

When there are too many stains or marks on the check. 

When someone writes over, scrawls, or fixes something on a check.

False Cheque Bounce

A lot of people still like to pay with checks because they can be sent to people who don’t have bank accounts yet or aren’t comfortable with net banking.

But these days, more and more cases of checks not being cashed are being brought to Indian courts. These cases are based on Section 138 of the Negotiable Instruments Act of 1881. 

Most of the time, these cases involve getting someone to pay money or hurting their reputation. Unfortunately, some of these cases involving check bounces are not real.

They are meant to hurt innocent people who end up in trouble with the law because they don’t know what to do.

How would you deal with a False Cheque Bounce Case?

In these situations, the victim doesn’t need to worry too much because the accusation is false. It’s usually easy to show with valid documents that the issuer’s bank account had enough money in it to cover the check. 

When there is a false check bounce, here are some critical steps to take: 

Getting together all the essential papers – If someone is falsely accused of something, the smartest thing to do is to find evidence that will show they are guilty of what they are accused of.

In the same way, this case is the same, and managing the relevant documents would show that I am innocent and the bank is guilty. 

Talk to the bank and get information about the following: The bank will send you a notice if your check bounces. When that happens, you need to call them to make sure it happened and find out why it did. 

Get a Cheque bounce lawyer in Delhi and answer the bank’s legal notice. Putting together a legal notice is challenging, and you should take it seriously because once it’s sent, you can’t change what it says and have to stick to it. 

It would not be possible for you to change what you wrote in your notice.

For that reason, you should talk to a lawyer who specializes in check bounce cases and respond to the notice about the check bounce case that the check receiver would have sent you. 

Within 30 days of getting the notice, the reply should be sent. When there is fraud or a false accusation, the case is often dropped after a legal notice is transmitted.

File a countercase: There is a law that says the person who filed a false check bounce against you can be sued in civil court.

You can ask for money for the false accusation. You can also ask for money to make up for all the harm and costs you may have had to pay to deal with the bank fraud case.

You can also sue the person who made the false accusation for libel.

Documents required for filing a countercase

• Payment invoices
• Bill generated when the payment was made
• The bank account statement
• Copy of the cheque issued
• Bank draft cheque

Always keep two or three copies of every document because you may need to give them to the people in charge of the case.

When the documents are close at hand, the process goes more quickly and without any problems.

Section 138 in The Negotiable Instruments Act, 1881

If a check bounces or is dishonored, Section 138 of the Negotiable Instruments Act 1881 gives you legal options. 

This part of the law was just recently made less illegal. The Ministry of Finance suggested on June 8, 2020, that some minor crimes should not be punished in order to “improve business sentiment and unclog court processes.”

These crimes would include Section 138 of the Negotiable Instruments Act of 1881. 

The main reason for making this section less illegal is to attract foreign investment to our country. India’s economy has been hurt badly by the coronavirus disease.

These steps will also help India’s economy go back on track. 

However, there are always consequences to actions, and this step will cause creditors to lose faith in the check system. 

What to do when a check bounces 

According to Section 138 of the Negotiable Instruments Act, it is illegal to cash a bad check or have a check bounce. If you get caught, you could go to jail for up to two years, and you would have to pay a fine or both. 

If the court is sure that you are guilty and the bank’s case has no basis, it will charge you with everything.

Conclusion

Cases of False Cheque Bounce and other types of fraud are on the rise every day.

It’s essential to know about the different kinds of fraud, especially fraud involving money, like check fraud, since money is an integral part of every job. 

As the saying goes, “Precaution is better than cure.” It is always good to know about these scams so that you can quickly stop them from happening or, if that isn’t possible, at least know how to fix them.

If you see, you can help someone who is stuck in that situation.

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