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May 20, 20233 min read

Can Send Cheque Bounce Notice To An Insurance Company

A Cheque bounce notice constitutes nothing more than a warning to the issuer that the recipient of the cheque may file a lawsuit if the money is not paid right away.


Within 30 days of the cheque being returned due to its validity, the cheque issuer must be given a cheque bounce notification in accordance with Section 138 of the Negotiable Instruments Act. Since the bounce of a cheque is a serious infraction in India, it is prohibited under the virtue of Section 138 of the Negotiable Instruments Act and is subject to fines or imprisonment.


Sending a legal notice for a bounced cheque entails filing a lawsuit against the individual who issued the unpaid cheque that got returned to the intended recipient. Before proceeding any further, it is important to note that when this occurs, it is a violation of the Negotiable Instruments Act of 1881 in India and that the cheque issuer is responsible for making the payment after receiving a legal notification for a cheque bounce.


Drafting a Cheque Bounce Notice

Be particularly cautious while writing a notice of a bounced cheque. Given that it is a warning about impending legal action, the notice must be written appropriately. The completed draft must be printed on white paper or on business letterhead before being given to the person who will cash the cheque.


The drafting of cheque bounce notice must include the following-

  • Name of the cheque's recipient

  • Name and location of the cheque's maker

  • The cheque's return date

  • Causes of cheque returns

  • A request for an immediate alternative payment was made to the cheque issuer, and

  • If payments are not made as agreed, the drawer may go to court and file a criminal case in accordance with Section 138 of the Negotiable Instruments Act.

Important Conditions for Drafting Legal Notice for Cheque Bounce


The following criteria are essential for a Cheque Bounce notice-

  • The initial prerequisite is that the cheque must be written for a specific liability.

  • It must be within a six-month window of validity.

  • The bank must have rejected the cheque since there wasn't enough money.

  • After a cheque bounces, the notice must be delivered within 30 days.

  • After receiving a notice that a cheque had bounced, the drawer had 15 days to make the payments; after that, legal action can be initiated against the company.

The Process for Cheque Bounce Notice

  • The Drawee must first send the request notice to the Drawer via registered mail within 30 days after the return message.

  • The drawer has 15 days from the time the notice was received to make the payment.

  • The Drawee has the right to file a complaint if the dues are not made.

  • The accused will be called to court after the court accepts a complaint.

  • Section 138 of The Negotiable Instruments Act will be used to begin the proceeding.

Every day, cheque bounce cases are reported to banks across the nation. India, therefore, has legislation in place to assist us in handling incidents of cheque bounce. There are many factors that can cause a cheque to bounce. Sending a legal notice to the defaulter is the next step once the cheque bounces. It is recommended to retain the services of an experienced lawyer who can help you with the filing and preparation of legal advice for cheque bounce.


You will need the help of a lawyer to send a legal notice to any person or any company if your cheque bounces. If you need the assistance of lawyers to send a legal notice to any insurance company for cheque bounce in Chandigarh, then Cheque Bounce Lawyers Chandigarh can be hired, and if you need the assistance of lawyers to send a legal notice to any insurance company for cheque bounce in Noida, then Cheque Bounce Lawyers Noida can be hired. Similarly, Cheque Bounce Lawyers Jaipur can be employed if you need the assistance of lawyers to send a legal notice to any insurance company for cheque bounce in Jaipur.


At Lead India, you can consult and talk to lawyers there. You can obtain free legal advice online as well as ask a legal question online for free to lawyers for consultation at Lead India.


Call Us: +91–8800788535

Email: care@leadindia.law



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