Practice information from Advocate Mukul Verma, District & Sessions Court, Bhiwani · Published · Updated
A dishonoured cheque should be assessed with the alleged liability, bank memo, notice and service record. Section 138 of the Negotiable Instruments Act provides a specific statutory route where its requirements are met; dishonour alone is not a complete assessment.
Preserve the essentials
Keep the original cheque, the bank return memo and records of the underlying transaction such as invoices, loan papers or messages.
Statutory steps and timelines
Cheque dishonour proceedings involve prescribed steps, including a demand notice within a set period. Missing a timeline can affect the remedy, so dates should be reviewed promptly.
If you received a notice
Note the date of receipt and gather your records. A considered reply, and where appropriate a settlement discussion, may be relevant depending on the facts.
The transaction and possible remedies
Records of the alleged debt or liability, part-payments and correspondence can be as important as the cheque itself. Identify the issuer, payee and transaction rather than assuming a bank memo proves the whole claim.
A statutory complaint, a civil recovery question and a settlement discussion involve different considerations. Existing proceedings and payment arrangements should be disclosed for coordinated assessment.
Key considerations
- Preserve the cheque, bank memo and transaction evidence.
- Record bank information, notice and delivery dates accurately.
- A complaint and a civil recovery claim are not interchangeable procedures.
Information on this page is for general informational purposes and does not constitute legal advice. The facts and circumstances of each matter may differ.
Reading this page or sending an enquiry does not establish an advocate-client relationship. Any next step depends on review of the complete facts and applicable law.