The Negotiable Instruments Act, 1881 is a law that deals with promissory notes, bills of exchange, and cheques. It is mainly used in cases where a cheque is dishonoured due to insufficient funds.

To use it legally, the payee must send a notice within 30 days of the cheque bouncing. If the drawer doesn’t pay within 15 days of receiving the notice, the payee can file a complaint in a magistrate’s court. The case can also be settled between the parties.