Procedure regarding legal notice for cheque bounce.

Can anyone file a case or issue a legal notice to someone if the cheque bounce one time or the cheque has to be produce second time and then again bounces, only then legal process can be done ?

Answers (3)

Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act

the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, 1
[within thirty days] of the receipt of information by him from the bank regarding the return of the cheque as unpaid, and

the drawer of such cheque fails to make the payment of the said amount of money to the payee or. as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

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If cheque bounce then the creditor has right to give legal notice under the Negotiable Instruments Act 1881,sec 138. No need to get the cheque bounce twice.once the cheque bounce the person having the cheque has right to file case after giving notice for 15 days .

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It is very pertinent that you send a legal notice before the institution of legal proceedings against the person who has given you the cheque, which ultimately bounced.

Without issuing notice, suit won't be maintainable.

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