Practice Areas / Cheque Bounce & Money Recovery
Someone's cheque bounced, or a person or business owes you money and isn't paying? A properly drafted legal notice is usually the first step, and with cheque bounce cases the deadlines are strict. If you have received a notice yourself, a careful reply matters just as much.
Under Section 138 of the Negotiable Instruments Act, 1881, the notice must be sent within 30 days of receiving the bank's cheque return memo. The person who issued the cheque then has 15 days to pay. If they don't, a complaint can be filed within one month after those 15 days end.
Keep the original bounced cheque, the bank's return memo, and anything that shows the money was owed, such as invoices, messages, an agreement or bank transfers. The law presumes a cheque was given for a legally enforceable debt, but the other side can challenge that, so records help.
For most money recovery claims the general limitation period is three years under the Limitation Act, 1963, but it depends on the type of claim. It's best to act early.
It's usually wise to reply within the time stated in the notice. A clear reply puts your side on record, and that can matter if the dispute goes to court.
Read our guide: Cheque Bounce under Section 138: Step-by-Step
This information is general and not legal advice. Laws and procedures can change and depend on your situation, so please consult an advocate about your specific case.
