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Cheque Bounce Resolution Process At WeVaad
Step 1: File a case on our platform
Step 2: Legal notice sent to the opposite side
Step 3: Assignment of an Experienced WeVaad Expert to resolve the dispute
Step 4: Both the sides to upload their supporting documents and pleadings
Step 5: WeVaad Expert to review the docs and schedule hearing
Step 6: WeVaad Expert to issue an award which is binding on both the parties
Documents Required For Filing Cheque Bounce Case
- Original Cheque: The original bounced cheque is essential to prove that the transaction took place and that it was dishonored by the bank.
- Legal Notice: A copy of the legal notice sent to the drawer of the bounced cheque demanding payment. This notice serves as a formal communication to the drawer regarding the dishonored cheque and provides them an opportunity to make the payment within a specified time frame.
- Postal/Courier Receipt: Retain the acknowledgment receipt or courier receipt as proof that the legal notice was sent to the drawer. This receipt demonstrates that you followed the required legal process.
- Cheque Return Memo: Obtain a copy of the Cheque Return Memo or the memo issued by the bank stating the reason for the dishonored cheque. This document is crucial in establishing the fact that the cheque was returned unpaid.
- Bank Statements: Provide relevant bank statements that show the transaction details, including the deposit of the bounced cheque, subsequent dishonoring, and any related communication from the bank.
- Account Holder Details: Gather details of the account holder, such as their name, address, and contact information. This information will help identify the drawer of the bounced cheque.
- Notice of Dishonor: If you receive a Notice of Dishonor from the bank, make sure to retain a copy. This notice serves as official communication from the bank regarding the dishonored cheque.
- Copy of Complaint: If you have already lodged a police complaint against the drawer of the bounced cheque, provide a copy of the complaint to support your case.
- Any Correspondence: Preserve any additional correspondence related to the bounced cheque, such as emails, letters, or SMS exchanges, as they may serve as supporting evidence.
- Identification and Address Proof: Carry your identification documents, such as Aadhaar card, PAN card, passport, or driver’s license, as well as address proof documents, such as utility bills or rental agreement, to establish your identity and address.
How Tiered Dispute Resolution Clause Works?
- Section 138 of the Negotiable Instruments Act, 1881: This section deals with the offense of dishonoring a cheque and provides the legal framework for filing a cheque bounce case. It outlines the conditions and procedures to be followed in such cases.
- Legal Notice: As per Section 138, the payee (the person to whom the cheque was issued) must issue a legal notice to the drawer (the person who issued the cheque) within 30 days of receiving information about the dishonored cheque from the bank. The notice must demand payment of the cheque amount within 15 days from the receipt of the notice.
- Opportunity to Rectify: The drawer has an opportunity to rectify the situation by making the payment within 15 days of receiving the legal notice. If the drawer fails to make the payment within this period, it constitutes a criminal offense.
- Criminal Offense and Punishment: The dishonor of a cheque is considered a criminal offense under Section 138. If convicted, the drawer may face imprisonment for a term which may extend up to two years, or a monetary penalty, or both. The court has the discretion to impose appropriate punishment based on the circumstances of the case.
- Jurisdiction: The cheque bounce case must be filed in the appropriate court within whose jurisdiction the bank branch where the payee holds an account is located.
- Limitation Period: The complaint for a cheque bounce case must be filed within one month from the date of expiry of the 15-day period mentioned in the legal notice. If the complaint is not filed within this period, it may be barred by limitation.
- Evidence and Burden of Proof: The burden of proving the dishonor of the cheque lies with the complainant (payee). The complainant must provide evidence such as the original bounced cheque, the Cheque Return Memo, and other relevant documents to establish their case.
- Compounding of Offense: In certain cases, the parties involved may opt for a settlement through compounding, wherein the drawer agrees to pay a certain sum of money to the payee to resolve the matter. The court’s permission is required for compounding the offense.
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FAQs
1. What is online dispute resolution (ODR)?
Online dispute resolution is a process that utilizes digital technology to resolve disputes between parties without the need for physical presence. It provides a convenient and efficient way to resolve conflicts, including cheque bounce cases, through virtual communication channels.
2. How does online dispute resolution work for cheque bounce cases?
In cheque bounce cases, online dispute resolution involves using digital platforms and tools to communicate with the parties involved, including the cheque issuer and the payee. Through secure online portals or virtual meetings, parties can present their case, provide evidence, negotiate settlements, and ultimately reach a resolution.
3. Is the resolution reached through online dispute resolution legally binding?
Yes, the resolution reached through online dispute resolution can be legally binding if the parties involved agree to the terms and conditions set forth during the process. Once an agreement is reached and documented, it holds the same legal validity as a resolution reached through traditional legal proceedings.
4. How can I initiate the online dispute resolution process for a cheque bounce case?
To initiate the online dispute resolution process for a cheque bounce case, you can contact our service and provide details about the case, including the parties involved, the bounced cheque details, and any supporting documentation. Our team will guide you through the necessary steps and facilitate the online dispute resolution process.
5. What happens if a resolution is not reached through online dispute resolution?
If a resolution is not reached through online dispute resolution, alternative options can be explored, such as pursuing the case through traditional legal channels or seeking arbitration. Our service can assist in transitioning to another method of resolution to ensure the case is resolved effectively.