What precaution can i take if cheque gets bounced

535 votes

Dear client,

Kindly refer to your query posted above. It seems that you had issued a post-dated cheque long back, and you have paid the amount through electronic/online transfer.

I understand that your owner has deposited the cheque of same amount which you cleared online. Though the cheque is dishonoured, however, at present it is not at very critical stage. I assume that the cheque has been dishonoured due to insufficiency of the fund rather you requested to bank to stop the cheque for payment.

As per Section 138 of the Negotiable Instrument Act, 1881, the owner has to mandatorily issue a notice for payment of the cheque within 30 days from the date of dishonour. Upon receipt of the notice you have time of 15 days to pay. It would be good if you reply to such notice stating that the amount has been paid and settled through electronic transfer. Note that even after your reply the owner files a suit against you before the court, a summon will be issued to you. In that case also there is nothing to worry, you just need to appear before the court and submit your point that you have already cleared the amount through electronic transfer. If you ignore the summon of the court then a warrant will be issued against you to bring you before the court.

It would be good if you settle the dispute with your owner amicably.

Best regards,

Disclaimer: As to matters of law, I limit my response to the laws of India and the laws/rules/regulations of the state under whose jurisdiction the subject matters falls. Further, my response is limited to the facts presented by the client and laws in existence on the date of this response and at no subsequent time. This response is delivered to you in connection with the query raised/posted, and may not be utilised or quoted by you for any other purpose or relied upon by any other person or entity without prior consent. Further, this response does not create any attorney client relationship.

Advocate Sangeet Sindan LawRato

504 votes

Police cannot arrest you as it is summary trial
And if the transaction is made through bank you can easily setup your defence or otherwise if the cheque is not presented then you intimate the bank for not honouring the said cheque

Advocate Sridhar A LawRato

537 votes

If the cheque issued by you is dishonoured firts you may recieve a legal notice from that person asking you to make payment of the amount. Dont ignore to reply it. Next you mar recieve court summons and you appear along with a surety in court. Thus, you will not be arrested by the Police.

Advocate S.K Prabhakar Shetty LawRato

502 votes

If you have given a cheque 3 years back as security cheque do you have any other supporting document to prove[mail,letter,sms,whatsapp]to support that it is a security cheque?If you have given a blank cheque 3 years back please verfy that all banks hve cancelled their old cheque leves and new cheque leaves are issued.If it is an old cheque bank will not accept it.If it is dishonoured the owner has to send a statutory notice through a Lawyer.In that event you can dispute the cheque stating that the entries made in the cheque are not in your handwriting which is fabricated by the owner.You ca file a cheating,criminal breach of trust case against the owner.The police has no jurisdiction on rental,cheque cases.It is not a case fit case for police to arrest you.If police is harassing you for this matter you can file a case against the police before The Honourable High Court.

Advocate Sunil Paul LawRato