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A request for stoppage of payment can be made by a drawer before the cheque is presented for payment, and if the cheque is dishonoured, then that can still lead to legal proceedings by the payee.
A payee can first send a legal notice to the drawer under 30 days upon receiving the information from the bank of the dishonoured cheque. By non-payment of the drawer under 15 days of receiving the notice, a payee can file for a case within one month of the expiry of the 15-day notice period.
This is a crucial document that is issued by the drawer’s bank, proving reasons why the cheque was not honoured, and it also helps when proceeding for any legal actions by the payee.
Legal actions include filing a complaint under Section 138 of the Negotiable Instruments Act.
