A cheque bounce legal notice is a mandatory legal notice that must be sent under Section 138 of the Negotiable Instruments Act 1881 when a cheque is dishonored due to insufficient funds or any other reason. This notice is a prerequisite before filing a criminal complaint for cheque bounce and must be sent within 30 days of receiving the cheque return memo from your bank.

• Mandatory under Section 138 of NI Act 1881
• Must be sent within 30 days of cheque dishonor
• Gives drawer 15 days to make payment
• Prerequisite for filing criminal complaint
• Criminal offense punishable with imprisonment or fine or both

Section 138 of the Negotiable Instruments Act makes dishonor of cheque for insufficient funds a criminal offense. If a cheque is returned unpaid by the bank, the payee must send a legal notice within 30 days of receiving the return memo. The drawer then has 15 days to make the payment. If payment is not made, a criminal complaint can be filed within 30 days, leading to potential imprisonment up to 2 years, monetary fine up to twice the cheque amount, or both.

The cheque bounce legal framework has strict timelines that must be followed:

• Within 30 days of cheque dishonor: Send legal notice to drawer
• Drawer gets 15 days from notice receipt: To make payment
• Within 30 days of 15-day period ending: File criminal complaint if unpaid
• Missing these deadlines can make your complaint time-barred and invalid

A legally compliant cheque bounce notice must include:

• Details of the cheque (number, date, amount, bank)
• Date when cheque was presented and dishonored
• Reason for dishonor as per bank's return memo
• Demand for payment of cheque amount within 15 days
• Statement that complaint will be filed under Section 138 if unpaid
• Copy of dishonored cheque and bank return memo
• Advocate's signature and details

Under Section 138 of the Negotiable Instruments Act, cheque bounce is a criminal offense with serious consequences:

• Imprisonment: Up to 2 years
• Monetary fine: Up to twice the cheque amount
• Criminal record: Affects reputation and future transactions
• Compensation: May be ordered to pay cheque amount plus interest and costs
• Travel restrictions: Court may restrict travel during trial

In cheque bounce cases, time is of the essence. The 30-day deadline to send the notice starts from the date you receive the cheque return memo from your bank. If you miss this deadline, you lose the legal right to file a criminal complaint under Section 138. This is why it's crucial to act immediately upon cheque dishonor. VakilTech ensures your notice is drafted and sent within the legal timeline, protecting your rights.