Cheque bounce

SEC.138  of  NI Act .
A legal Notice is issued to Defaulter whose Chq is dishonoured .IT SHOULD BE ISSUED WITHIN 15 DAYS OF DISHONOUR OF CHEQUE BY REGISTERED POST A.D.

in case the said payment is not made within 15 day from the date of receipt of the notice  then the complainent has to file criminal case within 30 days .

The person has closed the account for which the cheques were issued. How should I proceed to prosecute the person. Within how many days notice is to be sent u/s 138. We received the intimation of dishonour from bank on 27-7-2013. can we also apply section 420 against the said person.

Now there are very recent APEX COURT judgements that a cheque also presumes lialility.

However you have to prove source of funds and what were compelling reasons to advance money  on security of just a cheque.

Unless you can do it the other side may  seek IT returns and  many such other related laws like illegal money lending which have very harsh provisions and huge powers in the hands of most junior officers.