Practice area

Cheque bounce lawyer in Bangalore

Notices, complaints and defence in cheque dishonour cases under Section 138 of the Negotiable Instruments Act, 1881.

Section 138 of the Negotiable Instruments Act, 1881 makes dishonour of a cheque, for insufficiency of funds or because it exceeds the arrangement with the bank, an offence if the statutory conditions are met. The process is strict about time, and a missed step can end a case.

The statutory sequence

1. The cheque is presented within its validity and is dishonoured
2. The payee sends a written demand notice within 30 days of receiving information of the dishonour
3. The drawer has 15 days from receipt to pay
4. If payment is not made, a complaint can be filed within one month after those 15 days expire

What this work involves

• Drafting demand notices and replies
• Preparing complaints, and defending them, including on limitation, liability and the presumption in favour of the holder
• Applications for interim compensation and settlement before and during trial
• Appeals, and petitions before the High Court of Karnataka to quash proceedings in suitable cases

For businesses

Companies that deal in cheques regularly can benefit from a short review of their payment and notice procedures, which are the source of many avoidable defects.

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