BANKING & N.I. ACT
Cheque Bounce & N.I. Act
A cheque-dishonour matter is governed by statutory requirements and timelines. The transaction documents and sequence of events should be examined carefully.
PRACTICE AREA
Cheque Bounce — S. 138 Overview
Legal assistance in matters arising from dishonour of cheques, including statutory notice, complaint proceedings, transaction records and related litigation under the Negotiable Instruments Act, 1881.
Professional assistance is considered on the basis of the facts, documents, applicable law and stage of the matter. The information on this page is intended to help readers understand the general scope of this practice area.
COMMON QUESTIONS
Frequently Asked Questions
General information only. The answer to a particular legal issue depends on its facts and applicable law.
What is the importance of the statutory notice?
The statutory notice forms an important part of the S. 138 process. Its timing, contents, service and the subsequent payment period should be examined in light of the applicable law.
What documents should be preserved?
The cheque, return memo, notice, proof of service, underlying transaction documents, correspondence and payment records may be relevant.
Does every dishonoured cheque automatically result in liability under S. 138?
No. The statutory ingredients and applicable presumptions and defences have to be considered on the facts of the case.