Cheque Bounce Cases


Cheque bounce cases, also known as dishonored cheque cases, are legal disputes arising from the non-payment or dishonor of a cheque issued by a drawer to a payee. When a cheque is presented for payment and is returned by the bank due to insufficient funds, account closure, or other reasons, it is considered bounced, leading to potential legal consequences.

In many jurisdictions, including India, cheque bounce cases are governed by specific provisions, such as Section 138 of the Negotiable Instruments Act. This section makes the issuance of a dishonored cheque a criminal offense, punishable by fines and imprisonment. The payee, upon receiving a bounced cheque, may send a legal notice to the drawer demanding payment within a stipulated time.

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