Ni Act- Cheque Bounce Notice
A Cheque is an essential instrument in business transactions. Transaction through cheque is one of the safest ways of managing business as it can be traced back if required. However, the only setback with the cheque is the chances of it getting dishonoured, which could be for technical reasons or because of the shortage of funds in the respective account. In the following article we are going to discuss the proper procedure to be followed to send a Legal notice under section 138 of the NI Act , in case of a cheque bounce- Parties involved in transaction by a cheque- Drawer- Customer or the account holder who issues the cheque Drawee- Basically the Bank on which the cheque has been drawn, is called the ‘Drawee’. Payee- The individual named in the cheque for getting the payment. Cheque Bounce- It is a term basically used to define the unsuccessful processing of a cheque due to various reasons. Non-sufficient funds in the account of the issuer is one of the major reas...