Discussion is about cheque bounce due to insufficient funds and legal steps under Section 138. Intimation letter to drawer is optional, but issuing a legal demand notice is mandatory. Case can be filed if statutory timelines are followed (notice within 30 days and waiting period thereafter).
07 April 2026
Sir Party issued cheque which was bounced due to 'insufficient fund'. Does the person (drawee) intimate drawer by letter about the Bounce and if no reply then formal legal Notice to initiate legal proceeding u/s 138 be possible? Then what is the time frame. Regards Abhijit
07 April 2026
• Intimation letter → ❌ Optional • Legal notice → ✅ Mandatory • Timeline → 30 days + 15 days + 30 days • Case possible → ✔ Yes, if timelines followed strictly