Cheque Bounce notice

At JuroLegal, we provide expert legal assistance for issuing and responding to Cheque Bounce Notices under Section 138 of the Negotiable Instruments Act, 1881. When a cheque is dishonoured due to insufficient funds, account closure, or payment stoppage, the aggrieved party must send a legal notice within 30 days of receiving the bank return memo. Our experienced lawyers draft legally precise demand notices, ensuring compliance with statutory timelines and legal requirements. We also assist recipients of cheque bounce notices in preparing appropriate replies and defence strategies to protect their rights.

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  • Juro Legal is a platform that offers legal services, specializing in drafting and sending legal notices, including Cheque Bounce Notices. They likely provide templates and guidance for creating these notices, tailored to the specific legal requirements and provisions applicable in your jurisdiction. If you require assistance with a cheque bounce notice, I recommend reaching out to Juro Legal or similar legal service providers to inquire about their services and how they can assist you in addressing your situation.
  • Section 138 of the Negotiable Instruments Act stipulates that the act of issuing a cheque without adequate funds constitutes a violation punishable by imprisonment. According to this provision, if an individual issues a cheque from an account they maintain to pay another party and the cheque is returned unpaid by the bank due to insufficient funds, it is considered an offense committed by the drawer of the cheque.
  • The cheque should be drawn to settle a legally binding debt or obligation, and its return by the bank should result from the drawer’s account having insufficient funds or exceeding the agreed-upon limit for withdrawals.
  • The punishment for this offense can include imprisonment for up to two years, a fine up to twice the amount of the bounced cheque, or both.
  • Juro Legal plays a crucial role in the process of drafting a legal notice for cheque bounce. Here’s how they contribute:
  1. Expertise and Legal Knowledge:
    • Juro Legal’s team of legal professionals possesses expertiseand in-depth knowledge of legal matters, including cheque bounce cases.
    • They understand the intricacies of the Negotiable Instruments Actand the specific requirements for drafting an effective legal notice.
  2. Drafting the Notice:
    • Juro Legal can draft a precise and legally sound noticeon behalf of the payee (recipient).
    • The notice includes essential details such as the cheque amount, reason for non-payment, and a demand for payment within a specified time frame (usually 15 days).
  3. Ensuring Compliance:
    • They ensure that the notice adheres to the legal frameworkoutlined in Section 138 of the Negotiable Instruments Act.
    • Properly serving the legal notice is crucial for initiating further legal action.
  4. Formal Communication:
    • The legal notice serves as formal communicationto the drawer (issuer) of the bounced cheque.
    • It notifies the drawer of the dishonoured cheque and provides an opportunity to settle the issue without immediate legal proceedings.
  5. Opportunity for Settlement:
    • By sending the notice, Juro Legal offers the drawer a chance to rectify the matter by making the payment within the stipulated time frame mentioned in the notice.
  6. Legal Journey Support:
    • Throughout the legal process, Juro Legal can assist the payee, track the limitation period, and ensure compliance.
    • Their involvement reduces the chances of failure in the cheque bounce case.
  • Basic Documents Required:
    • Bounced Cheque: The original cheque that was dishonoured by the bank.
    • Cheque-Returning Memo: This memo is provided by the bank and confirms that the cheque bounced.
    • Proof of Sending Legal Notice: Evidence that you sent a legal notice to the drawer (issuer) of the cheque.
    • Evidence of Notice Delivery: Proof that the notice was received by the intended recipient.
  • The Legal Notice Process:
    • Step 1: Send a Legal Noticeto the drawer within 30 days from the date of the cheque bouncing.
    • Step 2: The notice gives the drawer 15 daysto make the necessary payment.
    • Step 3: If the drawer fails to pay within these 15 days, you can proceed to file a criminal complaintin court within 30 days from the expiry of the notice period.
  • What Should the Cheque Bounce Notice Cover?
    • The notice should include the following details:
      • Names and addresses of the parties involved.
      • Cheque number and the amount on the cheque.
      • Brief summary of the facts leading to the claim.
      • Reason for cheque bounce, along with the return memo from the bank.
      • Date when the cheque was issued by the drawer.
      • Date when the cheque was presented for payment (before its expiry period).
      • Relevant legal provisions and prescribed punishments.
      • Direction to the drawer to make payment within 15 days.
      • Mention of filing a complaint if payment is not made within the stipulated time.
      • Signature of the advocate representing the payee.
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  1. Draft the Legal Notice:
    • Within 30 daysof receiving the return memo (indicating the cheque bounce), the payee (recipient) must draft a legal notice.
    • The notice should be signed by a lawyer and include all necessary details (as mentioned below).
  2. Contents of the Cheque Bounce Notice:
    • The notice must cover the following points (among others):
      • Names and Addresses: Include the names and addresses of the parties involved (payee and drawer).
      • Cheque Details: Mention the cheque number and the amount on the cheque.
      • Facts Summary: Briefly describe the facts leading to the claim.
      • Reason for Bounce: Explain the reason for the cheque bounce, along with the return memo from the bank.
      • Cheque Issuance Date: Specify the date when the cheque was issued by the drawer.
      • Presentation Date: State the date when the cheque was presented for payment (before its expiry period).
      • Legal Provisions: Refer to the relevant legal provisions and the prescribed punishments.
      • Payment Direction: Direct the drawer to make payment within 15 daysfrom receipt of the notice.
      • Complaint Mention: Indicate that a complaint will be filed if payment is not made within the stipulated time.
      • Advocate’s Signature: Include the signature of the advocate representing the payee.