A check bounce notice is issued under Section 138 of the Negotiable Instruments Act when the drawer’s account does not have sufficient funds to pay the check amount. There can be no check bounce notice if the check bounces for any reason other than insufficient funds, and the payee may ask for the check to be resubmitted if the check bounces for any other reason.

The payee can initiate legal action against the drawer after 15 days of issuing the check bounce notice after the expiration of the check bounce notice. Under Section 138 of the Act, payments should be terminated immediately. Check bounce case is a criminal offense contemplated by Section 138 of the Act, which permits the payee to file a criminal complaint. It is the payee’s responsibility to file the complaint against the check bounce before the Magistrate within 30 days of the expiration of 15 days after the notice of check bounce has been sent.

Payees can file complaints with the following details at Magistrate offices:

• The place where the check was drawn.
• The location where the check was presented for payment.
• Location of the payment.
• Dishonored checks are checks that have been returned to the bank.
• Demand notice served at the following address.
• The check bounce suit must be filed before the Metropolitan Magistrate if it falls within a metropolitan city. In any other city, the complaint for check bounce must be filed with the Judicial Magistrate.

Process of Cheque Bounce Suit:

• A complaint must be filed with the Magistrate within 15 days of receiving a notice of a check bounce.
• The payee/complainant must appear before the court and provide details about the case. After reviewing the complainant’s statement, the Magistrate will summon the drawer for an appearance in court.
• A drawer will appear and accept or deny the facts stated by the complainant. A criminal trial will be conducted if the drawer refuses the complaint.
• A drawer/accused will file his statement, and both sides will present evidence and arguments.
• The drawer will be convicted of the offense of check bounce if the court finds him guilty of it.

Responding to a Cheque Bounce:

• To avoid any further legal proceedings, you must reply to the legal notice or pay the check amount. Consult a lawyer who specializes in check bounces before replying. Paying the check amount at the beginning will resolve the issue immediately.

It is not necessary to follow any specific format in replying to the legal notice, but make sure to include the following points:

• Reply to the legal notice by contacting the drawee’s lawyer.
• Please provide your name, address, and description.
• Date of issue, check-return memo, etc.
• Response to the allegations made against you.
• Don’t admit to any allegations made against you in the notice.
• The drawee of the check may be subject to complaints.
• A summary of your defense against the allegations in the legal notice.
• Any legal notice must be replied to on the letterhead of a lawyer.
• If you fail to respond to the legal notice or pay the check amount within 15 days, the drawee may file a complaint in court, which would initiate legal proceedings.