Many small business owners many a times face this kind of situations for reasons. Sometimes things becomes ugly and dragged and shaped to a court case when two parties differentiate for reasons. In the matters of cheque bounce the aggrieved party can file a civil suit to recover the money owed by the other party. It can be also handled by consumer foras and it is done many a times to save time because civil litigation takes too much time and consumer laws have wide application and time savers too.
Laws related to cheque bouncing are dealt by Negotiable Instruments Act 1881, Contract Act 1872, Specific Relief Act and Civil procedure code as well. Last amendments to negotiable instruments act is done in 2015 which gave major relief to the aggrieved party as now the aggrieved party can file a case where the cheque was got bounced and not where it was issued.
Necessary things to know about cheque bounce matters..
1. the aggrieved party has to issue or serve a notice to the cheque issuing party to repay the due and should give 15 days time for the repayment and the notice should be given within 30 days of the cheque bounce.
2. If no reply is received than the aggrieved party can file civil suit to recover the dues.
If suit occurs the aggrieved certainly needs to take the help of a lawyer who will guide him in the matter.
Punishment in the case of cheque bounce is both fine twice the cheque amount and jail term of two years or both.
