Dishonour of Cheque

What is Cheque Bounce/Dishonour of Cheque

Cheque bounce or dishonour of cheque occurs when the cheque that is presented to the bank for payment, is returned back either due to insufficient funds in the drawer’s account or the signature on the cheque does not match with the drawer’s signature or any other reason. In India, cheque bounce is considered a legal offence and the law regulating the offence is section 138 of the Negotiable Instrument Act, 1881.

Reasons for Cheque Bounce

Following are some of the reasons why a cheque is bounced or dishonoured:

1. Insufficient funds in the account of the person issuing the cheque
2. Unmatching signature on the cheque
3. Post dated cheque i.e. the date mentioned on the cheque is yet to come
4. Stale cheque i.e. the cheque is presented to the bank 3 months after the cheque was issued
5. When the payment is stopped- if the drawer asks the bank to stop the payment and not to pay for cheque already issued
6. Difference in amount in words and number
7. Disfigured or Damaged cheque- a cheque will be dishonoured if it is torn, damaged or not in a good condition or has some details not clearly visible

Should I approach RERA for my grievance?

Description

Since the very advent of the RERA Act, it has been a matter of great contemplation for the home buyers as to whether and how should RERA be approached.

RERA aims to protect the home buyer and to increase the sanctity of the real estate market by introducing transparency.

Whenever a home buyer has any grievance against the builder (promoter/developer for the purpose of the Act), Section 31 gives elaborative rights to file a complaint against such a builder, and to seek the appropriate remedy thereof. Not only can RERA be approached for interest qua the delay in possession, but also for refund of the entire amount paid to the developer, alongwith interest and compensation.

Benefits of filing a RERA complaint

  • Summary trials unlike consumer forums.
  • Speedy dispute resolution with loads of instances of the best relief being given on the first date itself.
  • Wide powers of RERA Authorities and Adjudication Officers.
  • Powers for Execution of the orders after attaching the property and bank accounts.

How to send a Legal Notice?

What is a Legal Notice and how to issue one:

Typically, as simple as it sounds, a Legal Notice is a well drafted account of the grievances along with the reliefs sought from the opposite party, which is sent to the opposite party/addressee  requiring them to do or to abstain from doing a certain Act. A Legal Notice is simply a warning in the legal sense whereby a party given some time to the other person to either comply with the requests made or to face legal action. However a Legal Notice is distinct from any self drafted letter, in the sense that a Legal Notice would have to be drafted by an advocate, and must bear the signatures of the advocate. In RERA law, Legal Notices are not a mandatory requirement before instituting the complaint, however, they may prove beneficial in saving the complainant from litigation, and may also aid in litigation if drafted well.

What is RERA?

Description

The Real Estate (Regulation & Development) Act 2016, or commonly known as the RERA, is a Central Act enacted by the legislature on 25th March 2016.

The introduction reads ‘An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto’.

From what can be culled out from the perusal of the Act, RERA aims to protect the home buyer and to increase the sanctity of the real estate market by focusing on transparency.

Objectives of RERA:

  • Regulation and promotion of the Real Estate Sector
  • Ensuring efficiency and transparency in the sale of the unit
  • To protect the interest of consumers in the Real Estate Sector
  • To establish Adjudicating Mechanism & Appellate Tribunal for dispute redressal
  • Speedy dispute resolution

All in all, the RERA is an ambitious and beautiful piece of legislation and the consumers in the Real Estate sector have high hopes and aspirations.