Keep the cheque and bank return memo
Retain the original cheque, deposit record and bank memo stating the reason for dishonour. Download the account statement and preserve any bank communication connected with presentation and return.
Document the underlying liability
Collect the contract, invoice, loan record, delivery proof, ledger, acknowledgement, messages and payment history showing why the amount was due. A cheque alone may not explain the complete transaction or possible defence.
Record every relevant date
Write down when the cheque was issued, presented, returned and when the return information was received. Section 138 matters under the Negotiable Instruments Act involve statutory conditions and deadlines that an advocate must calculate from the actual records.
Use a case-specific legal notice
The notice should accurately identify the parties, cheque, dishonour and legally enforceable liability and should be served through appropriate means. Errors in amount, dates, parties or service can affect the matter, so copied templates are risky.
Consider the commercial resolution too
Depending on the facts, the parties may discuss payment, settlement or another civil remedy alongside statutory options. Record any settlement carefully and do not surrender originals or rights without understanding the terms.
Key takeaways
- Preserve the original cheque and return memo
- Prove the underlying transaction
- Record every date immediately
- Have statutory deadlines calculated
- Use a notice drafted for the actual facts
Official sources
This is general information, not legal advice. Laws, procedures and deadlines vary by location and circumstances. Sources and procedures should be checked for later updates.
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