Dos & Don’ts of a Cheque Bounce Case in Indore; India
Dos & Don’ts of a Cheque Bounce Case in Indore; India
For the Payee (Creditor):
Dos:
- Send a Demand Notice: Immediately upon receiving the bounced cheque, issue a legal Demand Notice through a lawyer. This notice should inform the drawer of the dishonor and demand payment within a stipulated timeframe (usually 15 days). It serves as evidence of your attempt to resolve the matter amicably and strengthens your case in court.
- Gather Evidence: Keep all relevant documents handy, including the original cheque, bank statement showing dishonor, Demand Notice, and communication with the drawer.
- Seek Legal Advice: Consult a lawyer experienced in Negotiable Instruments Act (NI Act) cases. They can guide you through the legal process, prepare necessary documents, and represent you in court.
- File a Complaint: If payment isn’t received within the notice period, file a complaint against the drawer in the Magistrates’ Court under Section 138 of the NI Act.
- Attend Court Hearings: Actively participate in court proceedings and present your case effectively.
Don’ts:
- Delay Action: Don’t delay sending the Demand Notice or filing the complaint. Timely action strengthens your case and shows seriousness.
- Compromise without Legal Advice: Don’t agree to settlements without consulting your lawyer. Ensure terms are favorable and documented properly.
- Ignore Court Proceedings: Missing court hearings can weaken your case and lead to dismissal.
- Make False Claims: Exaggerating the amount or fabricating evidence can backfire and harm your case.
For the Drawer (Debtor):
Dos:
- Act Immediately: Upon receiving the Demand Notice, contact the payee and sincerely apologize for the inconvenience.
- Clear the Dues: If possible, arrange immediate payment of the cheque amount along with bank charges to avoid legal proceedings.
- Communicate Openly: Maintain open communication with the payee and express your willingness to resolve the matter amicably.
- Seek Legal Advice: If facing financial difficulties or unable to settle the amount immediately, consult a lawyer specializing in NI Act cases. They can advise on options like seeking an extension or negotiating a reasonable settlement.
- Attend Court Hearings: If summoned, attend court hearings and actively participate in the proceedings.
Don’ts:
- Ignore the Demand Notice: Ignoring the notice weakens your position and strengthens the payee’s case.
- Avoid Communication: Refusing to communicate with the payee or ignoring their attempts to reach you creates a negative impression and can harm your case.
- Issue Empty Promises: Don’t make promises you cannot keep regarding payment. This can be viewed as deception and further aggravate the situation.
- Tamper with Evidence: Altering documents or providing false information can have serious legal consequences.
- Neglect Court Proceedings: Missing court hearings can lead to judgment in favor of the payee and potentially harsher consequences.
Additional Tips:
- Both parties should prioritize amicable resolution through open communication and negotiation whenever possible.
- Legal proceedings can be time-consuming and expensive. Exploring out-of-court settlements can be mutually beneficial in certain situations.
- Always act with honesty and integrity throughout the process.
Remember, this information is for general awareness and does not constitute legal advice. For specific guidance in your case, consulting a qualified lawyer specializing in NI Act cases is highly recommended.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
