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.

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.