Cheque Bounce Process

PROCESS OF CHEQUE BOUNCE CASES 

UNDER NEGOTIABLE INSTRUMENT ACT, 1881

For the Knowledge, who is involved in the cases of Section 138 Negotiable Instrument Act, must know the following Procedure of Law: 

1.      Cheque should be deposit within three month from the date of Issue of Cheque.

       2.      If cheque credited in Bank Account then no matter, but in case cheque bounce due to any reason then Drawer is liable under Negotiable Instrument Act, 1881. Cheque bounce also a criminal offence.

       3.      Section 138 NI act is effective and fast remedy to recover the cheque amount.

      4.      In case cheque bounce, Drawee should send legal notice within 30 days from the date of Bank Memo which received from bank with all facts.

       5.     In legal notice, drawer’s have 15 days time to the payment of the cheque amount.

        6.  In case the said payment is made within 15 days of service of notice then the matter ends, but in case the said payment is not made within 15 days then the Drawee shall file Suit in the court against the drawer within 30 days from the expiry of notice period of 15 days.