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Suman Khurana (Company Secretary)     16 July 2010

replyto notice u/s 138



Company has received notice u/s 138 of NIA. within how much time company needs to give reply to this notice. plz quote section also.?


 4 Replies

Shalini Kaul (Independent Legal Practitioner)     16 July 2010

The Company must make payment of the face value of the dishonoured cheque, within 15 days of receipt of the notice failing which the other party will have the right to initiate criminal prosecution against the company and its officers. This is specified in Proviso (c) to Section 138 of the Negotiable Instruments Act 1881 (as amended) If you are denying the liability or the issuance of the cheque and hence intend responding to the notice in the form of a reply, even that ideally must be done within this period.   

Basavaraj (Asst, Manager-Legal)     16 July 2010

yes within fortnight,  niehter payment nor reply should do.Otherewise your debt deemed to accepted.

Since you in company becareful, your MD also liable for bounce cheque in case he signed.

conselt your lawyer to complete do course of law.



DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     19 July 2010

If you want to pay alright go and settle the matter.

If there are problems it is always better not to reply the notice , since cases are not won by complainant but lost by the accused.

As a routine if you and your advocate is vigilant you can always pick holes in the case.

If you read the citations placed  on this site by various friends , you will be surprised that very minor issues which no body bothers  to notice become fatal to the case.

So unless you have genunie problem go ahead and settle other wise be ready  to fight , you will win.


Mugundhan (Lawyer)     23 July 2010

I agree with Mr.Shashikumar. In a criminal case it is better not to expose your defense too early. So it is better not to reply. But there may be some circumstances in which it is better to to reply. It depends.

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