Since the cheque has been dishonoured, the process of law requires sending a legal notice for cheque bounce as per Section 138 of the Negotiable Instruments Act, 1881. The fact signifies the importance of a notice in order to safeguard the interests. Thus, the cheque bounce notice draft should be wisely chosen and implemented in a way that it serves its purpose. Here, we are attempting to share some insights regarding legal notice for dishonour of cheque.
What is the importance of a legal notice for Cheque Bounce?
The purpose of an effective cheque bounce legal notice is to intimate the drawer of cheque regarding dishonour of cheque as well as prospective legal action in case the debt was not cleared. If the information contained in the legal notice for dishonour of cheque lacks clarity or misses out on any crucial information, it may backfire, and serve as a weapon to be used by the opposite party. Thus, cheque bounce notice format should be chosen carefully. A well drafted legal notice for cheque bounce can save a lot of time and effort in future.
Cheque Bounce Notice Format
- Cheque bounce notice starts with the date on which the same is being sent. Here, the Cheque bounce time limit under NI Act regarding legal notice should be taken care of.
- It should precisely contain the name and address of the person who drew the cheque along with any other party involved.
- Subject matter of the legal notice for cheque bounce should signify the purpose in a clear manner.
- Start with the introduction of the person in whose favour the cheque was drawn. Cheque bounce notice should specify the name and address of the payee.
- The most important part of cheque bounce notice format is the details of when the cheque was drawn, against the invoice number if any, when presented for encashment, and returned as dishonoured.
- Specify the reason for cheque bounce as contained in the Return Memo shared by the bank.
- Also, do mention the reason for which the cheque was drawn, signifying a debt or legal liability.
- Make a clear request for payment of the amount mentioned in the cheque with immediate effect.
- Call out for any kind of ignorant behaviour in responding to the reminders of the person in whose favour the cheque was drawn.
- Specify the date by which the repayment is expected, with the mention of provision under Section 138 of the NI Act.
Note – Find sample cheque bounce notice format as shared on website of the Rajasthan High Court Lawyers Association Jodhpur – Click Here.
It may be noted that sending a legal notice is part of the Cheque bounce case procedure. After expiry of time limit for repayment after cheque bounce notice, a complaint follows. There are several factors to be taken care of while representing a cheque bounce case.
Also check – Can a cheque bounce case be compounded? – Find case laws
FAQs on Cheque Bounce Legal Notice
- How do I write a cheque bounce notice?
Ans. The details of cheque bounce legal notice format shared above can be followed to draft an effective notice for the required purposes. It is always suggested to hire the services of legal professionals for such tasks.
- Can I send cheque bounce notice without a lawyer?
Ans. There is no restraint on sending a legal notice without a lawyer. However, a legal professional is better able to understand the complexities of law, which if skipped while drafting the cheque bounce legal notice format, may have some impact on the Court proceedings in future.
- What is the notice period for cheque bounce?
Ans. The Cheque Bounce legal notice has to be served within 30 days of dishonour by the bank. While the cheque bounce notice format gives a chance for repayment by the drawer, there are 15 days for that. From Day 16, the cause of action begins for lodging a complaint for cheque bounce.
- Can 138 notice be sent after 30 days?
Ans. The limitation period for sending cheque bounce legal notice is 30 days. However, if due to unavoidable circumstances, the same could not be sent within 30 days, it may be sent later as well. When the matter reaches the Court, such unavoidable circumstances can be explained.
We shared what we gathered, and if you find any crucial pointer missing, do connect with us at lawgicalshots@gmail.com.
