📝 Section 138 (Cheque Dishonor Notice)
Take prompt legal action for bounced cheques. A Section 138 Cheque Dishonor Notice is the first crucial step to recover your money legally and hold the drawer accountable under the Negotiable Instruments Act, 1881.
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📜 What is a Section 138 Cheque Dishonor Notice?
A Section 138 Cheque Dishonor Notice is a formal legal notice sent to a cheque issuer when their cheque has been dishonored or bounced due to insufficient funds or any other reason. Under Section 138 of the Negotiable Instruments Act, 1881, dishonoring a cheque is a criminal offence in India, and issuing a legal notice is the first step to protect your rights and recover your dues.
This notice acts as an official intimation to the cheque drawer, demanding payment of the cheque amount within 15 days from the date of receipt of the notice. If the drawer fails to make the payment within this period, the payee has the right to initiate legal proceedings against the drawer.
📌 How to Use a Cheque Dishonor Notice?
✅ The notice must be sent within 30 days of receiving the cheque return memo from the bank.
✅ The notice should clearly mention details such as the cheque number, amount, date of issue, reason for dishonor, and a clear demand for payment.
✅ Keep a copy of the notice and proof of delivery (courier/postal receipt or email) for future legal proceedings.
A well-drafted notice helps
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