Navigating the legal landscape of a cheque bounce can be a complex and often stressful experience. Under the Negotiable Instruments Act (N.I. Act), Section 138, the law provides a clear and structured process to address this issue. This blog post will guide you through the various stages of a cheque bounce case, from the initial notice to the final judgment. Stage 1: The Legal Notice The first and most crucial step is to issue a legal notice to the person who issued the bounced cheque. This must be done within 30 days of receiving the bank's cheque dishonor memo. The notice serves as a demand for the amount due and aims for an amicable settlement. The issuer of the cheque is given 15 days from the date of receiving the notice to settle the matter. • Key takeaway: The cause of action for a legal case only arises if the issuer fails to pay the amount within this 15-day period. Stage 2: Filing the Complaint If the person who issued the cheque does not respond or fails to settle the ma...
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