Client's cheque has bounced 2 times how to proceed legally now

631 votes

A legal notice is required to be sent within 30 days of the date of receipt of the dishonoured cheque from your bank, asking thereby the drawer of the cheque to make the payment of the cheque amount within 15 days of the receipt of legal notice. In case 30 days have already been passed from the second bounce, the cheque can be further deposited to the bank for clearance till its validity.

In case the drawer fails to make the payment of the cheque amount within notice period, a case under Section 138 of Negotiable Instruments Act read with Section 420 IPC can be filed within 45 days of the dispatch of legal notice.

Section 138 Negotiable Instruments Act provides punishment up to two years and fine to the extent of double of the cheque amount while as Section 420 IPC provides punishment up to to 3 years.

You need to hire a lawyer for the purpose of serving legal notice.

Simultaneously, you can also file a civil suit for recovery. For further inquiry you can contact me.

Advocate Arun Kumar LawRato

815 votes

Hello. You can file a case under 138 of negotiate instrument act. Plz Send a legal notice first if he still didnot respond in 15 days than file a case in court..Attach all the relevant documents and cheques which got dishonoured on due date. Thank you

Advocate Preeti JD LawRato

531 votes

If the cheque is dishonoured by your bank and you have received the bank memo, you serve him the legal notice within 30 days of receiving the bank memo stating that the particular cheque has been dishonoured.

Advocate Kalyan Singh Ahlawat LawRato

574 votes

Immediately send legal notice through some lawyer under section 138 of NI Act by sharing details of cheque and return memo. After that if payment is still not received then file a complaint under section 138 of NI Act .

Advocate Arun Singh LawRato