what is meant by drawer on a cheque? In other words who is a drawer in a cheque . These are common questions that require adequate understanding for a common man to understand in simple words.
Who is a drawer in a cheque ?
The person who issues a cheque is called a drawer of a cheque. In other words the person who signs the cheque is the drawer of a cheque. The person who receives the cheque for receiving payment is called the payee. The drawee is the bank that is responsible for processing the payment and paying the payee. Section 7 of the Negotiable Instruments Act of 1881 defines all the three terms namely “drawer” and “Drawee.”
Who is a Drawer: The person who makes a bill of exchange or cheque
Who is a Drawee: The person who is directed to pay the bill
What does the term “refer to drawer “mean?
As we know that banks cannot disclose the account summary to third parties so when a cheque bounces due to insufficient funds the terms refer to drawer is used so as to fulfill the criteria to have sufficient funds to honor the cheque.
Cheque bounce under Section 138 of the Negotiable Instruments Act
When a cheque bounces due to insufficient funds the cheque is returned to the receiver or payee of the cheque and it also gives the opportunity to the payee of the cheque to serve a demand notice within 30 days from the date the cheque was returned to the payee . The demand notice will have to be served within 30 days via registered mail and shall contain details of the cheque and the amount and also reason for dishonor of cheque and also the date when the cheque was presented in the bank and the date when the cheque bounced and with a request to make the payment within 15 days. If the person who issued the cheque defaults to make payment as per request on the demand notice then the payee may avail criminal proceedings under section 138 Negotiable Instruments Act within 30 days of the expiration of 15 days notice period.
What is the validity of a cheque ?
A cheque is valid for 3 months therefore it has to be drawn within the period of 3 months from the date mentioned in the cheque
Cheque Bounce in Metropolitan Magistrates court ,Bankshall, Kolkata
Within 30 days of a dishonored cheque, the cheque beneficiary sends the defaulter the Cheque Bounce Notice via registered mail. The notice of a bounced cheque must be written properly and include details about the transaction’s type, the amount involved, the date the cheque was deposited with the bank, the date the cheque bounced, the cause of the bounce, and the beneficiary’s request for payment within 15 days If the cheque issuer defaults in payment, the payee may bring a criminal complaint in court within 30 days of the expiration of the 15-day notice period . It is often seen that in Metropolitan Magistrates court , Bankshall Court at Kolkata we often see both parties residing at different cities or the company that is the drawer of the cheque is located at some other city and the defaulter is some other city but the cheque bounce case is instituted in Kolkata. This happens because the cheque was presented in the drawee bank at kolkata where the complaint has a bank account and the cheque was presented in that city bank .
Summons issued in Cheque Bounce case?
Once admitted in Magistrates Court and summons issued to the defaulter , it is imperative for the defaulter to firstly appear in court and avail bail so that the proceedings go on with the defaulters presence . Once bail is availed proceedings go on . Thereafter the counsel may appear in court as long as the court does not direct appearance of the accused/defaulter with applications for exemption from personal appearance.
Bailable warrant in Cheque Bounce case in Kolkata
If the defaulter of a cheque does not wilfully appear in court then bailable warrant will be issued. Next thing is to obtain a bail from the court to secure himself.
Non Bailable warrant in cheuqe bounce case in Kolkata
If the accused does not appear even after bailable warrant is issued then a non bailable warrant is issued.
Conclusion for what is meant by drawer on a cheque?
For a better understanding of cheque bounce and filing a cheque bounce case in kolkata we provide free online consultation and will assist you in Metropolitan Magistrates Court at bankshall kolkata. You may call at 9873628941 or click here to submit your query.
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