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Notice after a cheque has bounced

Last updated on Jun 1, 2022

Sending a notice after a cheque has bounced.

Punishing the Issuer of the Cheque

Send a demand notice

If a cheque that you’ve received as payment has bounced, you must first send a notice to the issuer of the cheque to pay the amount that was due, along with the cheque return memo that you have received from the bank. This is known as demand notice. This demand notice must be sent within 30 days of the cheque bouncing.

Drawer has to pay

The drawer will have 15 days from the date of receiving the notice to pay you the money.

Filing a Case

Drawer replies and pays the money

In such a situation, then there is no need to file a case, as you have received the money.

Drawer replies but does not pay the money

Where the drawer replies but does not pay the money, then upon the completion 15 day period, you have 30 days to file a criminal complaint in court.

Drawer does not reply, does not pay the money

Where the drawer does not reply and does not pay the money, then upon the completion 15 day period, you have 30 days to file a criminal complaint in court.

Recovering the Money

Once your cheque has bounced, you have 3 years to file a civil case to recover the money that is due to you. Please contact a legal professional to know more about the civil procedure.

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