The cheque return memo (also called the cheque return slip or dishonour memo) is the document issued by the bank when a cheque is returned unpaid. It is the primary evidence of dishonour in a cheque dishonour case under Section 138 of the NI Act. The reason for return stated on the memo has significant legal implications. TRW — Tahmidur Rahman Remura Wahid Law Associates reviews cheque return memos carefully to assess the strength of the client's case.
Common Reasons for Cheque Return
Banks in Bangladesh return cheques for various reasons. The most common reasons and their legal implications are as follows. 'Insufficient funds': this is the classic Section 138 NI Act dishonour and gives rise to criminal liability. 'Account closed': this also gives rise to criminal liability under Section 138, as it indicates that the drawer had no funds in the account. 'Payment stopped': this is more complex — if the drawer stopped payment for a legitimate reason (e.g., dispute about the underlying transaction), the criminal liability under Section 138 may be contested. 'Signature mismatch': this may not give rise to Section 138 liability if the mismatch was genuine. 'Post-dated cheque presented before date': this does not give rise to Section 138 liability as the cheque was not yet due.
TRW analyses the reason for return stated on the bank's memo and advises on the strength of the Section 138 case.
The 30-Day Limitation Period
The 30-day period for sending the legal notice runs from the date of receiving the cheque return memo — not from the date of dishonour. TRW calculates this period precisely and ensures that the legal notice is sent within the prescribed time. If the return memo was received by post, the date of receipt is the date on which the memo was delivered to the payee's address. See our guide on cheque dishonour legal notices.
How Barrister Tahmidur Rahman Can Help
Barrister Tahmidur Rahman and TRW's cheque dishonour team review cheque return memos and advise on the strength of the NI Act case. Contact TRW at https://tahmidurrahman.com/contact/.
Frequently Asked Questions
Q: Can I file a Section 138 case if the cheque was returned for 'signature mismatch'?
A: It depends on the circumstances. TRW advises on the strength of the case based on the specific facts.
Q: What if I lost the original cheque return memo?
A: TRW advises on how to obtain a duplicate from the bank and whether the case can proceed without the original.
Q: Can I file a Section 138 case for a post-dated cheque?
A: Yes, if the post-dated cheque was presented on or after the date on the cheque and was returned for insufficient funds.
