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Cheque Bounce Notice
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When can a Cheque bounce notice be issued?
- The cheque must be presented within 3 months from the date of its issue.
- The cheque must have been dishonoured due to non-sufficient funds.
- The maker of the cheque has not paid the amount within 15 days from the date of serving the notice regarding the bouncing of the cheque.
- The beneficiary has intimated the maker of the cheque within 30 days from the date of bouncing of the cheque.
- The cheque has been provided for the settlement of any past liability.
Legal Action for Cheque Bounce
As per Negotiable Instruments Act, legal notice must be sent within 30 days from the date of cheque bounce. Thereafter within 15+30=45 days from the date of sending the legal notice, case must be filed.
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