According to Section 6 of the Negotiable Instruments Act, of 1881, a cheque is described as a bill of exchange drawn on a specified banker, which is not expressed to be payable except on demand. It is a negotiable instrument that directs a bank to pay a particular amount from the drawer's account to the payee or to the bearer of the cheque. In India, cheques are used as a mode of payment and for transactions since they are a secure and documented method of fund transfer.

A cheque is a bill of exchange drawn on a specified banker that is not expressed to be payable except on demand. A negotiable instrument directs a bank to pay a particular amount from the drawer's account to the payee or the cheque's bearer.

Cheque bounce is a condition when a bank rejects a cheque for one of several reasons, including insufficient funds in the drawer's account, signature mismatch, expired validity, or any other reason that the bank deems fit.

• Drawer A drawer is defined as a person or an entity who writes the cheque.
• Payee A payee is defined as a person or an entity to whom the cheque is payable.
• Drawee – A drawee is defined as the bank on, which the cheque is drawn.
• Date The date specifies the day and month on, which the cheque is written.
• Amount Amount is the total sum of money to be paid. The amount is written in two formats - words and numerals.
• Signature Signature refers to the drawer's signature, which authorises the bank to make the payment.

The Cheque Bounce Notice Period is 30 days, and it must be issued within 30 days of receiving the Cheque Return Memo from the bank

In India, cheques are a financial instrument commonly used for various banking transactions. Different types of cheques are used depending on factors such as who the issuer is, who the drawee is, etc. Based on these factors, let us explore different cheque types below:

• Bearer Cheque: A bearer cheque is the one that’s payable to the person who presents it at the bank.
• Crossed Cheque: A cheque with two parallel lines with the words ‘a/c payee’ written on the top left is called a crossed cheque.
• Order Cheque: Order cheques are the ones where the words "or bearer" are cancelled. These types of cheques are issued to the person whose name is written on the cheque.
• Post-Dated Cheque: Post-dated cheques are the ones with a future date for encashment mentioned on them. In case such cheques are even presented immediately, the bank does not process them until the stipulated date, payment only on the specified date.
• Open Cheque: Any cheque that is uncrossed and can be encashed at the bank where payment is made to the bearer is called an open cheque. Open cheques can be transferred from the original payee to the other payee.
• Traveller’s Cheque: Traveller’s cheques are popular with foreign tourists who do not wish to risk carrying hard cash to a new travel destination.
• Stale Cheque: A cheque that is way past its validity of three months from the date of being issued is called a stale cheque.
• Self-Cheque: It is easy to identify a self-cheque since it has the word "self" written in the drawee column. Self-cheques can only be drawn at the issuer's bank.

The Cheque Bounce Legal Action in India states that a cheque bounce is a criminal offence in India where a payee can seek legal recourse under Section 138 of the Negotiable Instruments Act.

There are no specific Cheque Bounce Charges as a cheque bounce penalty. The bail amount varies from case to case and depends on various factors.

The cheque bounce case procedures are laid down in the Negotiable Instruments Act, 1881

Yes, since cheque bounce is a criminal offence, you can be arrested under cheque bounce legal action. However, since it’s a bailable offence, you can get bail if you fulfil the conditions put forth by the court.

As soon as a cheque is dishonoured, the bank notifies the payee through a 'cheque return memo', which states the reason for the dishonour. Payee has the option to resubmit the same cheque, hoping that it will be honoured upon re-submission. However, if the cheque gets dishonoured again, it attracts legal action against the drawer. However, this condition is applicable only if the dishonoured cheque was issued to settle a debt or a liability.

The list of documents needed to file a Cheque dishonour Complaint in India includes: Notice copy served on the drawer, Evidence of notice service – courier/registered post receipt, original cheque on record,
A cheque return memo issued by the bank to the drawer Evidence supporting the existence of a legally enforceable debt or liability.

In a cheque bounce case, the payee has the option to initiate a legal proceeding against the drawer. The payee can file a civil as well as a criminal suit against the drawer wherein the civil suit can be filed under Section 138 of the Negotiable Instruments Act, while a criminal case must be filed before the Magistrate.

Earlier, the cheque bounce validity period was 30 days. However, post an amendment in 2002, the cheque bounce validity period has been amended and the payee can now raise the complaint even after the expiry of the one month, provided the complainant has reasonable grounds to prove the delay.

The cheque bounce case time limit in India cannot be stated accurately. However, a case filed against the drawer runs in the range of 6 months to 2 years.

A cheque bounce notice under Section 138 of the NI Act can be easily created with the help of our legal professionals. It includes significant details such as the names and addresses of the cheque beneficiary and issuer, the date when the cheque was returned, the reason for its return, and a request for immediate alternative repayment.

Clearly state that the notice is issued under Section 138 of the NI Act. Print the notice on plain white paper or the business's letterhead. Send the notice via registered post to ensure a formal record of the issuance date. Also, retain one copy of the notice for your records and ensure that the other copy is delivered to the cheque issuer through the registered post.

Notice for dishonoured cheques is a legal document sent by the payee to the drawer when the bank dishonours a cheque due to any one of the reasons, such as insufficient funds, signature mismatch, or any other discrepancy pointed out by the bank. The cheque bounce notice is managed according to Section 138 of the Negotiable Instruments Act, of 1881.