Issuing a proper cheque bounce notice is mandatory before filing a case under Section 138 of the Negotiable Instruments Act. Many cases fail due to technical errors in notice drafting.
What Is a Cheque Bounce Notice?
A cheque bounce notice is a legal demand sent to the drawer of the cheque after it is dishonoured by the bank. It demands payment within a prescribed time.
Legal Timeline for Sending Notice
The timeline includes:
- Cheque dishonour by bank
- Notice sent within 30 days
- 15 days given for payment
- Case filed within 30 days after non-payment
Missing deadlines can invalidate the case.
Essential Contents of a Cheque Bounce Notice
The notice must include:
- Cheque details
- Reason for dishonour
- Amount demanded
- Legal provisions invoked
- Time for payment
Improper notices weaken legal claims.
Common Mistakes to Avoid
Common errors include:
- Wrong dates
- Incorrect cheque details
- Delay in sending notice
- Improper legal language
Such mistakes can lead to dismissal.
What Happens After Notice?
If payment is made within 15 days, the matter ends. If not, the complainant can file a criminal complaint.
Penalties in Cheque Bounce Cases
Punishments may include:
- Imprisonment
- Fine up to double the cheque amount
- Compensation to complainant
Courts take cheque dishonour seriously.
Online Legal Consultation for Cheque Bounce Cases
Online lawyers help draft accurate notices, track timelines, and represent clients effectively.
Conclusion
A cheque bounce notice is a critical legal step. Proper drafting and timely action ensure strong legal protection.