Cheque bounce Law Videos - How to calculate demand notice period in cheque bounce case


Cheque bounce is a criminal offence under section 138 of the Negotiable Instruments Act, and the punishment for the very same is also very strict so after a cheque bounces for the first time, a reasonable amount of time is given to the person whose cheque bounces for him to make an attempt to payback the person to whom money is due as well as bank charges for the bouncing of the cheque.
 
If the cheque return memo was received from the bank on 23.10.2013 after the cheque bounced, the counting of 30 days period begins from the next day i.e. 24.10.2013. Such period of 30 days would end on 22.11.2013.
In case the payment to the creditor and the requisite bank charges are not made within the demand notice period after the cheque return memo has been issued, criminal proceedings can be initiated against the person who had issued the cheque.
The demand notice period is a period of 30 days, which begins from the day after the cheque return memo was received.

It is important to be noted here that it is not the date of notice but the date of posting of the notice from which the demand notice period starts. The General Clauses Act applies for calculation of period of 30 days.

A requisite degree of leniency is given to a person who submits a cheque which bounces before legal prosecution. However, this is balanced on the other side by providing penal provisions by which persons can be prosecuted in case payment is not made even 3 months after the cheque first bounced.