1.Chqeue transactions-How to survives from cheque return transaction

You see, how to survives from cheque return transaction chqeue transaction considered the oxygen of the world trade industry considered strong base of the country’s economy. Everyone, partnership firm or a company cheque transaction has become part of life when a merchant or company accepts cheque from the buyer in exchange for the value of their goods or services. The seller person or organization deposits the cheque received from the buyer in their bank account following the rules as well as the bank deposits the transaction amount in their account after completing the prescribed procedure. This is the general trade policy.

2. Cheque return charges/ Cheque bounce charges-How to survives from cheque return transaction

That, the seller of goods or services presents the amount of the check to the bank for credit and the bank returns the check to the seller without any credit for any reason, the bank charges deposit fixed transaction fee due to which the seller of the goods or services does not get the price. And, time to pay the extra charge which called very painful situation for trader or company.

3. What happens cheque returned?-How to survives from cheque return transaction

Initially, the amount of the check not credited to the account of the seller of goods or services. Additionally, the trader informed in writing and orally the bank that the cheque rejected. Therefore, the person selling the goods or services forced to recover his legal debt seeking legal remedy.

4.Reason for Cheque return/ Cheque bounce-How to survives from cheque return transaction

1. Insufficient balance in the account than the amount of the cheque

2. Closure of account of the purchaser of goods or services

3. Errors in cheque writing

4. Different in signature

5. Stop payment

6. Three months have elapsed since the date of the cheque

7. Since the cheque was not properly prepared

8. Etc.

5. Legal notice must be given to the goods or service to receive the cheque amount

Moreover, the bank informs the seller that the amount of the cheuqe will not be credited to the account of the seller of the goods or services. It is mandatory to give legal notice to the person who buys the goods or services within the time prescribed by law. The buyer of the goods or services may respond in writing to the legal notice given by the seller of the goods or services. Finally, the unpaid seller has to file complaint against the buyer of their goods or services to recover the amount in court.

6. Settlement of cheque dispute

Then after, case is filed against the purchaser of the goods or services, the court send notice to them to appear and give them an opportunity to make court settlement, but if the purchaser of the goods or services fails to pay the amount, the court will initiate further proceedings.

7. What is punishment Cheque return/Bounce under act?

Indeed, the purchaser of the goods or service fails to pay the amount, the court will initiate further proceedings and if the person entitled to receive the unpaid amount in this case proves his side in court, the purchaser of the goods or services may end up in imprisonment for non-payment of the amount.

8. Can lower court judgment be appealed?

therefore any defect in the judgment pronounced by the lower court in the time limit prescribed by law against the judgment given by the court after the lower court has convicted the purchaser of the goods or services, the law gives the purchaser the right to challenge the goods or services. Using that right, they can file an appeal in the Appellate Court within the time limit prescribed by law.

Note : This article has been prepared by reading the provisions of only Indian law. If you want to understand more about this you can discuss the following email- info@askbylaw.com

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