Cheque bounce in India

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Cheque bounce in India
PathLegal www.pathlegal.in
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• You may think that it is easy to get someone to
  pay up whose cheque has bounced.  But timing and
  procedure are very important in cheque bounce in
  India. 
• If you are in need to recover an amount which is
  due on a cheque, that has bounced, you may follow
  the below mentioned ways.
• Firstly send a demand notice to the party who
  issued the cheque. Through this notice you may
  threaten to initiate proceedings under the NI
  Act, if the amount due is not paid.
• Hopefully, the threat of prosecution can work
  magically and lead to speedy settlement. If the
  party is an individual, the proceedings will go
  under section 138 of the NI Act and if it is a
  company, the   M D can be prosecuted personally
  under section 141.
• The duration to send demand notice is within 30
  days from the date you found that the cheque has
  bounced.
• There is no specific format for this. Its
  purpose is to simply demand payment and also to
  inform the issuer that if the payment is not made
  within 15 days, he/she will be prosecuted.  

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• If you are for sure can draft a notice yourself,
  a lawyer is not required to send this notice. Get
  it verified by a lawyer for a small sum. This
  notice often becomes the point of aggressive
  battle when a dispute does reach trial.  
• Remember, proof of service of the notice is very
  important. Either you can send it via courier if
  pressed for time or send a copy through
  registered or speed post.  The perfectly viable
  option is speed post.
• If you are a victim of cheque bounce issue, it
  is advisable to go for criminal prosecution than
  filing a civil suit. You could consult experts by
  referring http//www.pathlegal.in/ChequeBounce/In
  dia/

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