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 Rupesh Tiwari

Advocate Rupesh Tiwari

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Cheque Bounce, Child Custody, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, Labour & Service, Landlord & Tenant, Media and Entertainment, Motor Accident, Muslim Law, Patent, Property, R.T.I, Recovery, RERA, Succession Certificate, Trademark & Copyright, Wills Trusts, Revenue, Tax, Breach of Contract, Medical Negligence, Banking & Finance, Customs & Central Excise

Get Advice
Advocate Parag Negi

Advocate Parag Negi

Consumer Court, Cheque Bounce, Civil, Corporate, Criminal, Divorce, Cyber Crime, Domestic Violence, Family, Insurance, Labour & Service, Landlord & Tenant, Medical Negligence, RERA, Motor Accident, Property, Recovery, Succession Certificate, Revenue

Get Advice
Advocate Vandana G Pandey

Advocate Vandana G Pandey

Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Divorce, Domestic Violence, Family, High Court, Landlord & Tenant, Motor Accident, Property, Recovery

Get Advice
Advocate Puneet Tandon

Advocate Puneet Tandon

GST, Tax, Court Marriage, Divorce, Family, Cheque Bounce, Banking & Finance

Get Advice
Advocate Sandeep Kumar Gupta

Advocate Sandeep Kumar Gupta

Banking & Finance, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Criminal, Divorce, Domestic Violence, Family, Insurance, Landlord & Tenant, Medical Negligence, Motor Accident, Revenue

Get Advice
Advocate Muddam Venkatesham

Advocate Muddam Venkatesham

Anticipatory Bail, Arbitration, Armed Forces Tribunal, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, International Law, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, NCLT, Patent, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Bhanu Prakash Sharma

Advocate Bhanu Prakash Sharma

Anticipatory Bail, Cheque Bounce, Child Custody, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Succession Certificate

Get Advice
Advocate Yojanya Murthy

Advocate Yojanya Murthy

Anticipatory Bail, Cheque Bounce, Child Custody, Civil, Consumer Court, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Property, R.T.I, Succession Certificate, Wills Trusts, Revenue, Muslim Law, Court Marriage, Banking & Finance, Bankruptcy & Insolvency

Get Advice
Advocate Khaliqul Azam

Advocate Khaliqul Azam

Anticipatory Bail, Cheque Bounce, Child Custody, Domestic Violence, Family, Cyber Crime, Criminal, Divorce, Muslim Law, Medical Negligence, Consumer Court

Get Advice
Advocate Ravi Tegta

Advocate Ravi Tegta

High Court, Labour & Service, Consumer Court, Cheque Bounce, Anticipatory Bail, Criminal

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.