7.6 Notice of Dishonor

On dishonour (non-acceptance or non-payment), the holder must give notice of dishonour to the drawer and endorsers within the law's reasonable time, or they are discharged. Notice may be actual or constructive; its office is to let the prior parties know to protect themselves. The drawer's death/insolvency and certain waivers modify the rule. Dishonour of a cheque for insufficiency of funds is the classic offence/civil-suit trigger for recovery of the cheque amount with the statutory consequences Nepal's framework provides under the Negotiable Instruments Act, 2034 read with procedure rules.