Legal Updates 24 September 2026
India's 30-Day Cheque Bounce Notice Rule
The 30‑day legal notice rule in India requires that a drawer of a bounced cheque be served a formal notice within thirty days of the bounce. If the notice is not issued in time, the creditor may lose the right to sue for recovery, making timely notice crucial for enforcing payment. The rule balances protection for borrowers by giving them a short window to address the default while ensuring creditors follow proper legal procedures before proceeding to court.
Key points
- If a cheque bounces, the drawer must receive a legal notice within 30 days of the bounce.
- Missing the deadline can invalidate the creditor's claim for recovery.
- The rule gives borrowers a brief chance to remedy the default before legal action.
Read the full explanation here.
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