What happens if drawer pays after notice? (No case)

Answer

A:

If the drawer pays after receiving the legal notice, then the cheque bounce matter ends there and no case is filed. Here’s how it works:

1. Legal Notice Stage

• When a cheque bounces, the payee must send a demand notice to the drawer within 30 days of receiving the return memo.

• The drawer is given 15 days from receipt of the notice to pay the cheque amount.

2. If Drawer Pays Within 15 Days

• If the drawer clears the full cheque amount within that 15 day period, the matter is settled.

• The right to file a case under Section 138 NI Act does not arise, because the law gives the drawer this opportunity to make good the payment.

• The cheque bounce will not result in criminal proceedings if payment is made in this window.

3. If Drawer Pays After 15 Days (Late Payment)

• Legally, once the 15 days expire without payment, the payee has the right to file a case in court.

• If the drawer pays after 15 days but before the case is filed, the payee may still accept the money and decide not to file the case.

• If the case has already been filed, then the matter can be settled or compounded in court, and the case will be closed.

• Payment within 15 days of notice → No case possible.

• Payment after 15 days but before filing → Payee’s choice (case may or may not be filed).

• Payment after filing → Settlement possible in court.

Do you want me to also prepare a simple timeline chart showing cheque bounce → notice → 15 days → payment/no payment → case filing? That will make it very easy to understand at a glance.