Do you need to recover an amount due on a cheque that is bounced? We will help you out of this problem. We firstly Send a letter (a demand notice) to the party who wrote the cheque i.e., drawer of the cheque, threatening to initiate proceedings under the Negotiable Instruments Act (NI Act) 1881. This Act was originally drafted in 1866 by the 3rd India Law Commission and introduced in December, 1867 in the Council and it was referred to a Select Committee. If the amount due is not paid. The threat of prosecution can often work its magic and result in prompt settlement.

Only if the drawer is an individual, the proceedings would happen under Section 138 of the NI Act. If the drawer is a company, its managing director can be personally prosecuted under Section 141. We send the demand notice within 30 days from the date you found out that the cheque issued to you has bounced. There is no prescribed format for this notice. Its purpose is to demand payment and inform the issuer that he or she will be prosecuted if payment is not made within 15 days.