Cheque Bounce Notice

Under Section 138 of the Negotiable Instruments Act, 1881, the penalty for issuing a bounced cheque includes: 

1. Up to 2 years imprisonment, or 
2. Fine up to twice the cheque amount, or 
3. Both imprisonment and fine 

Once you have sent a cheque bounce notice to the drawer (the person who issued the cheque), here’s what happens next: 

1. The drawer has 15 days from the date of receiving the notice to make the payment. 
2. If no payment is made within 15 days, you can file a criminal complaint under Section 138 of the Negotiable Instruments Act. 
3. The complaint must be filed within 30 days after the 15-day period ends. 
4. The case should be filed in the court with jurisdiction where the cheque was presented or dishonoured. 
5. If the drawer is found guilty, the court may order a fine, imprisonment, or both. 

Yes, a cheque bounce notice can be sent via email or WhatsApp, but with certain conditions: 

1. It is considered legally valid only if the drawer acknowledges receipt. 
2. It is recommended to also send a physical copy via registered post or speed post for stronger legal evidence. 
3. Electronic communication (like email or WhatsApp) can support your case but should not be the only mode of delivery.

Notice must be sent within 30 days of the date the bank issues the cheque return memo. 

1. The drawer (cheque issuer) has 15 days from receiving the notice to make the payment. 
2. If no payment is made within 15 days, a legal complaint must be filed within the next 30 days. 

1. When Cheque Bounce Occurs: The bank returns the cheque unpaid and issues a cheque return memo stating the reason (e.g., insufficient funds). 
2. Send Legal Notice: Within 30 days of receiving the return memo, send a legal notice to the drawer demanding payment within 15 days. 
3. Wait 15 Days: If the drawer fails to make the payment within 15 days of receiving the notice, you become eligible to file a complaint. 
4. File Complaint in Court: File a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881, within 30 days after the 15-day notice period ends. 
5. Court Proceedings: The case will be heard in a Magistrate court, where the drawer may be summoned, evidence examined, and penalties imposed if found guilty. 

Yes, a cheque bounce case can be settled outside of court at any stage: 

1. Before or after filing the case, both parties can mutually agree to settle. 
2. The drawer can pay the amount due and seek compromise, which may lead to a case of withdrawal. 
3. Settlement should be recorded properly, preferably with a written agreement and court approval if the case is ongoing. 

Settlement saves time, legal costs, and avoids criminal proceedings, making it a practical option in many cases.

1. Do Not Ignore the Notice: Treat the notice seriously and respond within the required 15-day time frame, even if the allegations are false. 
2. Gather Evidence: Collect all relevant documents- proof of payment, bank statements, or any communication that proves your innocence. 
3. Send a Formal Reply: Through a lawyer, send a well-drafted reply to the sender of the notice, denying false claims and presenting your evidence. 
4. File a Counter Complaint (if necessary): If the sender is trying to harass or extort you, you can file a counter complaint for defamation, extortion, or misuse of legal process under relevant sections of the BNS. 
5. Stay Legally Prepared: If the matter goes to court, be ready with documentation and legal representation to defend your case. 

No, you cannot legally send a cheque bounce notice without receiving an official return memo from the bank.

The return memo issued by the bank is mandatory legal proof that the cheque has been dishonoured. Without this document, your notice may not be used in court if it is challenged.

• Yes, you can absolutely negotiate a settlement after receiving a legal cheque bounce notice. 
• You have 15 days from the date of receiving the notice to clear the payment and avoid legal action. 
• If both parties agree, the matter can be settled mutually and in writing, even if the case has already been filed in court. 
• In such cases, the court may allow withdrawal or compounding of the case. 

Early settlement is often faster, less expensive, and avoids criminal proceedings. 

DigiLawyer makes the process of sending a cheque bounce legal notice simple, professional, and legally sound: 

1. Legally verified Drafts: Notices are drafted as per the Negotiable Instruments Act, 1881, and BNSS, ensuring accuracy and legal compliance. 
2. Customization of your Case: Whether it’s for a business or individual matter, we tailor the notice to include specific facts, amounts, and timelines. 
3. Quick and Hassle-Free: No need to visit a lawyer’s office- get your notice drafted and ready to send in a few easy steps. 
4. Optional Lawyer Review: You can choose to have your notice reviewed by a qualified lawyer for added legal strength. 

No, hiring a lawyer is not mandatory to send a cheque bounce notice. However, the notice must be correctly drafted in the prescribed legal format to be valid and effective in court.

DigiLawyer can help by ensuring your notice is legally compliant and ready for further legal action if needed.

Yes, we can help you resolve bounce cases without going to court. Here’s how: 

• Send a Strong Legal Notice: Our professionally drafted notice can compel the drawer to make the payment within the 15-day legal window, avoiding the need for court action. 
• Negotiate a Settlement: After receiving the notice, both parties can agree to a mutual settlement, either in writing or with the help of a mediator. 
• Document the Agreement: If the payment is made, we’ll help you prepare a clear settlement or compromise agreement to formally close the case.
• Avoid Legal Costs and Delay: Resolving the issue out of court saves time, legal fees, and stress, and keeps the matter private. 

DigiLawyer helps you resolve cheque bounce cases quickly and legally without stepping into court- by drafting strong notices and guiding the settlement process.