What action should I take if a cheque bounces?
I received a cheque, but there are insufficient funds in the account. What should I do, and where should I file a case?
In case a cheque is returned for insufficiency of funds, a formal cheque bounce notice must be issued to the drawer within 30 days of receipt of such notice from the bank. It is a payment notice and grants compliance for a further period of 15 days. In case the drawer fails to pay, a complaint can be filed under Section 138 of the Negotiable Instruments Act within 30 days after expiry of the notice period. This complaint is to be filed before a Magistrate in the appropriate jurisdiction. The choice is between a metropolitan or judicial magistrate's court depending on your place of residence.
Sir, if you have received a cheque but there are insufficient funds, so firstly you should send a legal notice for money recovery u/s 138 of NI Act. It is advised to consult an expert lawyer who will assist you to file a case in court of law. For further legal assistance contact us on our helpline number.
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