<p>Normally, when the cheque is deposited in the bank by anybody, the bank makes a payment for the amount written on the cheque by debiting the amount from the bank account of the payer. But in some cases, the cheque is returned to the payee. This is known as dishonouring of the cheque. In other words, it is also known as a returned cheque or a bounced cheque. Following are the reasons for dishonouring of cheques:</p>
<ul>
<li>Insufficient funds: When there is insufficient balance in the bank account of the payer.&nbsp;</li>
<li>Stale cheque: When the cheque has expired, i.e., the date goes beyond the validity period of the cheque which is for three months.</li>
<li>Post-dated cheque: When the cheque is deposited in the bank earlier to the date mentioned on it.</li>
<li>Mutilated cheque: When the cheque is damaged by fire, water, ink, paint, etc. or some piece on the cheque is found missing.</li>
<li>Crossed to two bank accounts: When there are more than two special crossings found in the cheques which indicates that the cheque is in the favour of two banks.</li>
<li>Property not marked: When the seal of a firm is missing in case of the cheques drawn by the firms.</li>
</ul>
<p>Act of dishonouring of cheques due to insufficient balance in the bank account of the payer is a criminal offence under Section 138 of the Negotiable Instrument Act, 1881. Therefore, it is the responsibility of the payer that he/she should keep his/her bank account funded with the sufficient balance to avoid cheque bouncing.</p>
<p><strong>Seraphic Advisors</strong>&nbsp;is one of the&nbsp;<strong>best banking and finance law firms in Delhi</strong>. We have handled many cases related to the dishonouring of cheques. Our highly-qualified&nbsp;<strong>banking and finance lawyers</strong>&nbsp;provide the best-in-class legal help to both payer and payee such cases. Contact us if you are facing such an issue.</p>
<h2>WHAT IS THE NEXT STEP?</h2>
<p>One question that arises in the minds of payees. Can a bounced cheque be resubmitted again in the bank? The answer is yes. After the dishonouring of the cheque, the payee can request the payer to submit the desired amount in his bank so that the payee can resubmit the cheque in the bank again.</p>
<p>What if the cheque is bounced again? In this case, the payee can take legal action against the payer.</p>
<h2>WRITTEN NOTICE TO THE PAYER</h2>
<p>After the dishonouring of the cheque, the payee has to send a legal notice to the payer stating him to pay the desired amount within 15 days. This is the first step that a payee should take after cheque bouncing. A legal notice should be sent within the 30 days of the acknowledgement of cheque return memo.</p>
<p>Our experienced lawyers and advocates know all rules and regulations of&nbsp;<strong>banking and finance act in India</strong>, hence, provide the best approach to the clients to send a legal notice. Contact us for&nbsp;<strong>money recovering issues</strong>. We have solved many cases related to cheque dishonouring.</p>
<h2>COMPLAINT PROCEDURE</h2>
<p>The payee can file a complaint against the payer by an affidavit. The documents submitted by the payee will be examined by the concerned MM (Metropolitan Magistrate). Once the commission is confirmed, the MM issues the summons for hearing of the case in the court.&nbsp;<strong>Seraphic Advisors</strong>&nbsp;has settled many issues related to cheque bouncing in India. Our&nbsp;<strong>banking and finance advocates</strong>&nbsp;have extensive experience. They know how to present these types of cases in the courtroom to assure success.</p>
<h2>PUNISHMENT AND PENALTY</h2>
<p>If the payer is found guilty in the court, the Magistrate a sentence of imprisonment of 1 to 2 years or a fine exceeding Rs. 5000. Even the issuing bank has the right to restrain the facility of issuing the cheque book to the convicted or can close his/her account.</p>
<h2>ABOUT SERAPHIC ADVISORS</h2>
<p><strong>Seraphic Advisors</strong>&nbsp;is the leading&nbsp;<strong>banking and finance law firm in Delhi</strong>. We take pride to have the&nbsp;<strong>best banking and finance lawyers in Delhi</strong>. We have been operating as a legal firm for many years. In our long journey, we have settled many disputes related to the dishonouring of cheques. If you are facing such a problem, you can contact us.</p>