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 Abdul Gofur Barbhuiya

Advocate Abdul Gofur Barbhuiya

Anticipatory Bail, Cheque Bounce, Domestic Violence, Family, Motor Accident

Get Advice
Advocate P N N Tagore

Advocate P N N Tagore

Cheque Bounce, Civil, Consumer Court, Criminal, Divorce, Domestic Violence, Family, Landlord & Tenant, Medical Negligence, Property, RERA, Succession Certificate

Get Advice
Advocate Ankur Srivastava

Advocate Ankur Srivastava

Consumer Court, Cheque Bounce, Criminal, Divorce

Get Advice
Advocate Raghunandan Singh Thakur

Advocate Raghunandan Singh Thakur

Anticipatory Bail, Cheque Bounce, Criminal, Family, High Court, Civil, Consumer Court, Court Marriage, Divorce, Insurance, Labour & Service, Recovery, Revenue

Get Advice
Advocate Pravin Sondkar

Advocate Pravin Sondkar

Documentation, Banking & Finance, Cheque Bounce, Family, Property

Get Advice
Advocate Krishan Jhajhria

Advocate Krishan Jhajhria

Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, Landlord & Tenant, Motor Accident, Property, R.T.I, Recovery, Succession Certificate, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Vairavan Kasirajan

Advocate Vairavan Kasirajan

Divorce, Cyber Crime, Cheque Bounce, Banking & Finance, Criminal

Get Advice
Advocate Bhusarapu Gangadhar

Advocate Bhusarapu Gangadhar

Cheque Bounce,Civil,Criminal,Divorce,Motor Accident

Get Advice
Advocate Navneet Kumar Jha

Advocate Navneet Kumar Jha

Anticipatory Bail, Banking & Finance, Cheque Bounce, Civil, Consumer Court, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Labour & Service, Motor Accident, Property, Recovery, Revenue

Get Advice
Advocate Sudhakar Kumar

Advocate Sudhakar Kumar

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

Cheque Bounce Related Questions

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