Cheque bounce notice under Section 138
When a cheque bounces, the person it was paid to can send a notice under Section 138 of the Negotiable Instruments Act within 30 days. You then have 15 days from receiving it to pay. If you don't, they can file a criminal complaint. TellBrief shows the cheque details, the amount, and the date your 15 days end.
Brief yours freeWhat TellBrief tells you
- The cheque number, amount and why it bounced
- The exact date your 15 days end
- What the law generally provides if it is not paid, stated calmly
- Questions to ask a lawyer before you reply
Words you'll see
- Dishonour
- The bank returned the cheque unpaid, for example for “funds insufficient”.
- Section 138
- Makes a bounced cheque for a debt an offence, if the amount is not paid within 15 days of the notice.
- Compounding
- Settling the case by agreement. Allowed at any stage of a cheque bounce case.
- Drawer / payee
- The drawer wrote the cheque; the payee was to receive the money.
Questions
How long do I have to pay?
15 days from the day you receive the notice. TellBrief works out the date from your notice.
Is a case already filed when I get this notice?
Usually not. The notice comes first; a complaint can be filed only after the 15 days pass without payment.
General information, not legal, medical or financial advice.
Brief yours free