Cheque Bounce Notice

This Notice is a Notice which shall be given by the unpaid Creditor (Payee) to the defaulting Debtor (Drawer) in case of dishonour of Cheque under section 138 of Negotiable Instrument Act.

 

When the cheque bounces due to insufficient funds and is returned by the bank, the payee should send a legal notice to the drawer of the cheque asking to make the payment.

 

The legal notice acts as intimation to the drawer of the cheque that the amount mentioned in the cheque needs to be paid by him, or else legal action will be taken against him under the Negotiable Instruments Act in the respective court.