In today’s financial transactions, cheques remain a common mode of payment. However, when a cheque is dishonoured due to insufficient funds or other reasons, it leads to a cheque bounce case under Section 138 of the Negotiable Instruments Act, 1881.
A cheque bounce occurs when a bank refuses to honour a cheque due to:
Drafting and serving legal notices
Filing complaints in court
Representing clients in recovery proceedings
Ensuring speedy resolution of cases
Issue a legal notice within 30 days of dishonour.
The drawer must make payment within 15 days of receiving the notice.
If payment isn’t made, a complaint can be filed before the magistrate.
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