Time line for cheque bounce notice and its reply

Whosoever is signitary of subject cheque i.e., Bhardwaj Clinic or Bardwaj Clinic shall be prosecuted.

Dear Rohit,

Thank you for your query! I am Aadil and I will try to answer your question.

The short answer to your question is that YES, you are correct.

The legislation pertaining to cases of cheque bounce is the Negotiable Instruments Act of 1881. As per section 138 of the same act, a case of cheque bounce exists when any cheque drawn by a person on an account maintained by them with a banker for the purposes of discharge of any debt or liability existing between them and another person through payment is returned by the bank unpaid, either because the amount of money in the account is insufficient or because it exceeds the amount of money that was arranged to be paid from the account by an agreement with the bank.

Coming to the question, section 138 also specifies some requirements to be completed before such a case is taken to court. It mandates that upon receipt of the information of the cheque being returned from the bank unpaid, the payee or the holder of the cheque must issue a notice in writing within thirty days to the drawer apprising them of the situation and demanding payment of the said amount of money. 

The drawer must reply to this notice within fifteen days from the day of receipt of the said notice by completing the payment of the said amount of money to the payee.

I hope this helps. Thank you for your time and patience!

Regards,

Aadil

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