Cheque Legal Notice: How to Draft and Send a Legal Notice for Bounced Cheques
A cheque legal notice is a critical step in addressing the issue of a bounced or dishonoured cheque. Under Section 138 of the Negotiable Instruments Act, 1881, if a cheque issued towards discharge of a liability is returned unpaid due to insufficient funds or any other reason, the payee has the legal right to initiate action. However, the process must begin with a formal legal notice to the drawer of the cheque.