Advocate Mohammad Kamran
- 10+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Cheque Bounce Legal Notice in Lucknow
The statutory demand notice that must go out after dishonour, and on which the whole of the section 138 remedy rests.
Cheque Bounce and Recovery
What this covers
The demand notice is not a formality or a warning letter. Under section 138 of the Negotiable Instruments Act, 1881 it is a condition of the remedy: the payee must, within the period the Act allows after receiving intimation of dishonour, call on the drawer in writing to pay the cheque amount. Only if the drawer fails to pay within fifteen days of receiving that notice does a cause of action to file a complaint arise at all.
Because so much rests on it, two things matter more than eloquence. The notice must be correct in its contents — identifying the cheque, the amount and the liability, and demanding the cheque amount itself. And it must be despatched in a way that can be proved later, because service is one of the most frequently contested issues in these matters.
Who this may assist
Who this service may assist
If your situation is not listed, it does not mean it cannot be dealt with. It means it should be discussed.
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Anyone holding a recently dishonoured cheque
The return memo has been received and the notice period is running.
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A business with several returned cheques
More than one cheque has been dishonoured and the notices need to be issued correctly for each.
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A payee who sent a notice without advice
A notice has already gone out and you want to know whether it is adequate and what follows.
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A payee whose notice came back undelivered
The envelope has returned unclaimed or refused, and you need to know where that leaves you.
Scope
Typical matters handled
- Examining the return memo to confirm the reason for dishonour and the date the period runs from
- Drafting the statutory demand notice with the required particulars
- Despatch by a method that produces a record capable of being proved
- Advice where a notice has already been issued, on whether it meets the requirements
- Advice on the position where a notice is returned unclaimed or refused
- Notices in respect of multiple cheques or a running account
Process
How the work generally proceeds
The sequence varies with the facts and the forum. This is the usual shape of it.
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Step 01
Confirming the trigger date
The date intimation of dishonour was received is established from the bank record, because the period for the notice runs from it.
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Step 02
Settling the particulars
Cheque number, date, amount, drawer, drawee bank, the transaction the cheque was issued for, and the demand for payment of the cheque amount.
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Step 03
Choosing the despatch method
Registered post with acknowledgement due, and courier or email in addition where appropriate, so more than one record exists.
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Step 04
Preserving the record
Postal receipts, tracking printouts, acknowledgements and any returned envelope are retained unopened and filed.
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Step 05
Watching the fifteen-day period
If payment is not made within fifteen days of receipt, the period for filing the complaint begins, and it is counted carefully.
Preparation
Documents commonly required
Bringing what you have makes the first discussion considerably more useful. Missing items can be obtained later.
- The original cheque and the bank's return memo
- Bank statement or passbook entry showing presentation and return
- The invoice, agreement or ledger showing the liability the cheque was issued against
- Full and correct address of the drawer, and of the firm or company if applicable
- Details of any earlier notice or correspondence about the same amount
- Authorisation to act, where the payee is a company or a firm
Cautions
Common risks and mistakes
- Demanding more than the cheque amountThe notice must demand payment of the cheque amount. Bundling interest and costs into the demand has been a recurring source of difficulty.
- Sending it to a stale addressA notice sent to an address the drawer has left creates an argument about service. Verify the address before despatch.
- Opening a returned envelopeIf an envelope comes back unclaimed or refused, keep it sealed. It is produced in court as it is.
- Waiting for a reply before filingThe period for filing the complaint runs whether or not a reply comes. It does not pause while correspondence continues.
- Using a template without checking the factsThe particulars of the cheque and the underlying liability have to be right. A generic notice invites a defence that the notice was defective.
See also
Related services
Reading
Related Guides
General information notes on this area. They are not legal advice.
The practice
Advocates
Each advocate of the firm is enrolled with the Bar Council of Uttar Pradesh and holds a Certificate of Practice.
Advocate Hamid Razzaq
- 15+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Advocate Mohd. Mateen
- 20+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Questions
Frequently asked questions
Refusal or non-collection is not necessarily fatal, and the law has developed around exactly this situation. What matters is that the notice was correctly addressed and properly despatched, and that the returned envelope is preserved unopened for production.
Electronic despatch can usefully supplement registered post, and is worth doing, but it should not replace a method that produces a formal record. The safest course is registered post with acknowledgement due, with electronic despatch in addition.
A notice does not have to be sent by an advocate. Whether the one you sent meets the statutory requirements is a different question, and it should be checked against the return memo and the dates before you rely on it.
Part payment within the fifteen-day period raises questions about whether the cause of action has arisen, and it should be dealt with carefully. Keep the record of what was paid and when, and take advice before the period expires.
Where the firm works
Lucknow and Uttar Pradesh Coverage
The firm's office is in Lucknow. Matters arising in other districts of Uttar Pradesh are conducted from Lucknow before the court, tribunal or authority that has jurisdiction over them. There is no branch office elsewhere. Which forum will hear a particular matter depends on its subject, its value and where the cause of action arose, and is confirmed before anything is filed.
This page is general information about an area of practice. It is not legal advice, and it is not an advertisement or a solicitation of work. Reading it creates no advocate–client relationship.
Procedures, limitation periods, court fees, stamp duty and government charges change, and what applies depends on the facts of the particular matter. Nothing here should be acted on without advice on your own documents, and no outcome is promised or predicted.
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