Law4u - Made in India

What happens if the drawer does not respond to the legal notice?

13-Jan-2025
Cheque Bounce

Answer By law4u team

If the drawer (the person who issued the cheque) does not respond to a legal notice after a cheque has been dishonored (for reasons like insufficient funds, or if the cheque is stopped), the following consequences can arise under Indian law: Criminal Liability: Under Section 138 of the Negotiable Instruments Act, 1881, dishonor of a cheque due to insufficient funds or other reasons constitutes a criminal offense. If the drawer does not respond to the legal notice within 15 days of receiving it, the payee can file a complaint in the Magistrate's Court. The drawer can then face a penalty of up to 2 years of imprisonment, or a fine that could be twice the amount of the cheque, or both. Civil Liability: In addition to criminal liability, the drawer may also be held civilly liable to pay the cheque amount to the payee. The payee can initiate a civil suit for the recovery of the cheque amount, leading to a possible money judgment against the drawer. Increased Legal Consequences: Ignoring the legal notice can result in a prolonged legal process, leading to higher legal costs, reputational damage, and further legal penalties. In summary, failure to respond to a legal notice after a dishonored cheque can lead to serious legal consequences, both criminal and civil, under Indian law.

Answer By Siddharth Srivastav

Drawer is legally not bound to respond or to disclose his defense in redponse to notice. Drawer can put his defense at rhe time of framing of notice also if case under 138 N.I. Act has been filed by drawee. Drawee is within its right to issue staturory notice and to file complaint as provided under 138 N.I.Act and can also file recovery suit but drawee can draw benefit only once and not twice.

Cheque Bounce Verified Advocates

Get expert legal advice instantly.

Advocate Gaurav Anand

Advocate Gaurav Anand

Anticipatory Bail, Arbitration, Cheque Bounce, Child Custody, Civil, Court Marriage, Criminal, Domestic Violence, Family, High Court, Medical Negligence, Muslim Law, Property, R.T.I, Succession Certificate, Wills Trusts

Get Advice
Advocate Meherdeep Chaurasia

Advocate Meherdeep Chaurasia

Anticipatory Bail, Cheque Bounce, Civil, Consumer Court, Criminal, Divorce, Domestic Violence, Family, Property, Succession Certificate, Revenue, Landlord & Tenant, High Court, Medical Negligence, Child Custody, Court Marriage, Breach of Contract

Get Advice
Advocate A G Deshpande

Advocate A G Deshpande

Divorce, Family, Domestic Violence, Insurance, Motor Accident, Property, Succession Certificate, Revenue, Cheque Bounce, Breach of Contract, Child Custody, Civil

Get Advice
Advocate Deep Kumar Patwa

Advocate Deep Kumar Patwa

Criminal, Civil, Motor Accident, Revenue, Cheque Bounce

Get Advice
Advocate Pawan Kumar Moray

Advocate Pawan Kumar Moray

Anticipatory Bail, Breach of Contract, Cheque Bounce, Civil, Court Marriage, Criminal, Cyber Crime, Family, Motor Accident, Revenue

Get Advice
Advocate Ganesh M

Advocate Ganesh M

Anticipatory Bail, Cheque Bounce, Corporate, Criminal, Cyber Crime, Domestic Violence, Family, High Court, Medical Negligence, Succession Certificate, Bankruptcy & Insolvency, Banking & Finance, R.T.I, Trademark & Copyright, Breach of Contract, Divorce, Child Custody, Court Marriage, International Law, Muslim Law, Property, Supreme Court

Get Advice
Advocate Aditi Singh Pawar

Advocate Aditi Singh Pawar

Domestic Violence, Criminal, Divorce, Court Marriage, Child Custody, Cheque Bounce, Consumer Court, R.T.I, Landlord & Tenant, Family, Immigration, Motor Accident

Get Advice
Advocate Shreyash H Sharma

Advocate Shreyash H Sharma

Anticipatory Bail, Cheque Bounce, Civil, Criminal, Domestic Violence

Get Advice
Advocate Durgesh Kumar

Advocate Durgesh Kumar

Anticipatory Bail, Cheque Bounce, Civil, Court Marriage, Criminal, Divorce, Domestic Violence, Family, Motor Accident, Succession Certificate, Child Custody

Get Advice
Advocate Anshit Balaiya

Advocate Anshit Balaiya

Arbitration, Banking & Finance, Breach of Contract, Court Marriage, Consumer Court, Civil, Cheque Bounce, Divorce, GST, Domestic Violence, Family, High Court, Criminal, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Muslim Law, Property, R.T.I, Recovery, Succession Certificate

Get Advice

Cheque Bounce Related Questions

Discover clear and detailed answers to common questions about Breach of Contract. Learn about procedures and more in straightforward language.