Common Cheque Bounce Questions
What is the benefit of sending a legal notice in case of cheque bounce?
A legal notice is a way to communicate your intent to initiate legal action against another party.
According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both.
Often the counterparty may either give into the threat of litigation and comply with the conditions laid down in the notice or be compelled to settle the issue outside of court, which is beneficial for both the parties.
If the counterparty does not respond to the legal notice, then you may approach the court to agitate your interest.
Can I take the other party directly to court without sending legal notice?
If payee wishes to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately. Such a chance has to be given only in the form of notice in writing.
The payee has to sent the notice to the drawer with 30 days from the date of receiving “Cheque Return Memo” from the bank. The notice should mention that the cheque amount has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer. If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act.
However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period. It is essential in this case to consult an advocate who is well versed and experienced in this area of practice to proceed further in the matter.
What happens after I share my details and pay for a notice?
1. Once the payment is made, our lawyers will draft the legal notice and send it for your approval in 48 hours.
2. Upon your approval, our lawyers will send the hard copy of the signed legal notice by registered post to the person against whom you have the grievance.
3. Soft copies of the signed legal notice and postal receipt shall be sent to you for further reference.
Which address will the reply to my legal notice go to?
The "Reply To" address in the legal notice shall contain your address. Hence, if the other party chooses to reply to your notice, it will come to your address.
What if the other party does not respond to the legal notice?
If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. LawRato.com has hundreds of experienced, verified lawyers who can help you file the case in the respective local court.