Check bounce - legal notice

Dear Client,
A post-dated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the cheque, the cheque's drawer will be held accused under Sec. 138 of N I Act, 1938. A legal notice is served on the drawer of the cheque within 30 days of the instance of dishonor. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque, irrespective of the reason behind the dishonor of the cheque and a chance to repay. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. The payee must file the complaint against the cheque bounce before the Magistrate within 30 days of the expiry of 15 days of issuing the cheque bounce notice to the drawer of the cheque. So, when you received legal notice on 20/01/2025 and make the repayment belatedly after 4 months on 23/05/2025, there is nothing wrong or illegal to receive a court notice directing you to appear before the court on 5/8/2025 fixed for hearing. The cheque bounce cases are compoundable under Section 138 of the Negotiable Instruments Act. Section 147 of the NI Act allows compounding of such offences, enabling parties to amicably resolve disputes out of court and avoid litigation. So, it is recommended to appear before the Court on the date fixed for hearing along with the proof of payment of cheque amount and try your best to settle the case with the complainant out of court to avoid further litigation. Compounding of offence may be beneficial to both the accused and the complainant. It allows the accused of a cheque bounce case to avoid potential imprisonment and fines, and the payee to get back the loan amount without lengthy court proceedings. If required, consult or hire an Advocate to represent you suitably before the court to navigate the matter effectively.

Dear Sir,

Appear before the court on 05/08/2025.

Bring proof of payment (such as a bank receipt or UTR number).

You may apply for compounding of the offence – which can result in the case being closed.

If the complainant agrees, the court may record a settlement or compromise.