The usual sequence
When a cheque is returned unpaid, the bank issues a return memo stating the reason. A statutory demand notice is then required to be issued to the drawer within the period prescribed by law. If payment is not made within the period allowed after receipt of the notice, a complaint may be filed before the competent court within the prescribed limitation.
Each of these steps carries its own time limit. Preserving the return memo, the notice, the postal receipts and the acknowledgement is therefore essential.
Documents to preserve
- The dishonoured cheque and the bank return memo
- Proof of the underlying transaction or liability
- Copy of the demand notice with postal receipt and tracking
- Any reply received from the drawer
- Records of part payments, if any
Defending a cheque complaint
A person receiving such a notice or summons should not ignore it. Defences may relate to the existence of the underlying liability, the circumstances in which the cheque was issued, or non-compliance with the statutory requirements. These are fact-specific and should be assessed on the documents.
This page provides general information about legal procedure and does not constitute legal advice. No outcome is promised or guaranteed. Every matter turns on its own facts and on the law applicable at the relevant time.