Cheque dishonoured what to do

604 votes

Negotiable instrument Act is very technical and strict. So without wasting time you must issue a legal demand notice within a month from the date of dishonour of cheque and upon receipt of the said notice waiting period 15 days and thereafter within a month you can initiate criminal proceeding against the drawer of the cheque.

Advocate Sagar Kothari LawRato

638 votes

As the cheque was issued by him to you because of contractual relation , as he breached the contract by dishonouring the cheque so you can get back the vehicle from his custody, if he is not willing to give then you have option to send notice within 1month of cheque bounce and later to ahead to file case within 75days from date of dishonor of cheque.

Advocate Shashi Chaturvedi LawRato

941 votes

According to section 138 b of the Negotiable Instruments Act you have to send a demand notice in writing for the payment of the said amount of money, to the drawer of the cheque, [within thirty days] of the receipt of information by you from the bank regarding the return of the cheque as unpaid.
Do not get carried away with his excuses. Send the notice through an advocate and if he doesn't pay within stipulated time of 15 days you can file a case under section 138 of the NI Act.

The cause of action for filing complaint would arise after the completion of 15 days from the date the drawer receives the notice and fails to pay the amount within that period.
You can file a case before completion of one month from the date on which the cause of action arose.

Advocate Sunita Bafna LawRato