Introduction
Getting a cheque dishonoured is not just frustrating it’s a serious legal matter. In Raipur, where small businesses, traders, and professionals still rely heavily on cheque transactions, a single bounced cheque can disturb cash flow and business relationships.
However, before you can take legal action under Section 138 of the Negotiable Instruments Act, 1881, you must send a properly drafted legal notice to the issuer. This notice is not just a formality it is a mandatory first step that protects your rights and sets the foundation for a successful case.
This article explains how to draft a valid cheque bounce notice in Raipur, what it should contain, and common mistakes to avoid.
1. Why a Legal Notice Is Important
A legal notice acts as an official communication informing the cheque issuer (drawer) that their cheque has bounced and demanding repayment within a specific time frame.
Without sending this notice within the legal time limit, your case cannot proceed in court. It gives the defaulter one final chance to make payment and helps demonstrate your good faith if the matter escalates.
2. Legal Framework
Under Section 138 of the Negotiable Instruments Act, the law requires:
- The cheque must have been presented within 3 months of its issue date.
- The bank must have returned it unpaid (for reasons like insufficient funds).
- The payee (you) must send a written legal notice within 30 days of receiving the bank’s return memo.
- The drawer has 15 days from receiving the notice to make the payment.
- If they fail to do so, you can file a criminal complaint in Raipur’s Judicial Magistrate Court (First Class).
3. Key Contents of a Legal Notice
A cheque bounce notice must include specific legal details to be valid.
Essential Elements:
- Your details (name, address, contact information).
- Drawer’s details (the person or company who issued the cheque).
- Cheque information – number, amount, bank, and issue date.
- Reason for dishonour – as stated in the bank’s return memo.
- Demand for payment – clearly ask for repayment within 15 days.
- Consequence of non-payment – mention that legal action will follow if the amount is not paid within the given time.
- Signature and date – of you or your authorized lawyer.
Conclusion
A well-drafted cheque bounce legal notice is your first and most important step in enforcing payment. It demonstrates professionalism, strengthens your legal position, and ensures your case is valid if it reaches court.
For Raipur businesses, timely legal action starting with the right notice can turn a bounced cheque from a potential loss into a legally recoverable amount.
– Written and Edited by – Shruti Goyal (B.A.LL.B)
