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Sunakshi   04 August 2021

Cheque dishonour

A cheque is bounced with remarks “Please contact Drawer / Drawee Bank and present again”. Can I send legal notice right away without contacting the Drawer of the cheque? Does the cause of action arise as soon as the check is bounced? Can the drawer be liable under Section 138 of Negotiable Instruments Act?


 1 Replies

srishti jain   06 August 2021

As per your query,

Yes, a legal notice can be issued to the drawer without contacting him. You can make a demand for the payment of the money by giving a notice in writing to the drawer within 15 days of dishonor of cheque. The drawer is given a time of 15 days to make the payment. If the payment is made, then the matter is served, and the issue is settled. On the other hand, if the payment, is not made, then you can file a criminal case under Section 138 of the Negotiable Instruments Act, 1881. 

Once the case is admitted in the court, a hearing will take place and, the summons will be issued under Section 138 of the Negotiable Instruments Act. If found guilty, the defaulter can be punished with a monetary penalty, which may be twice the amount of the cheque or imprisonment for a term that may, be extended to two years or both. If the drawer makes payment of the cheque amount within 15 days from the date of receipt of the notice, the drawer does not commit any offence. Otherwise, you may proceed to file a complaint in the court of the jurisdictional magistrate within one month from the date of expiry of 15 days prescribed in the notice.


Hope it helps,



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