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A cheque bounce case in India is a legal proceeding against a person who has issued a cheque that has been dishonored by the bank due to insufficient funds in the account. Cheque bounce is a criminal offense under Section 138 of the Negotiable Instruments Act, 1881.
What to do if you receive a cheque bounce notice
If you receive a cheque bounce notice, the first thing you should do is to send a demand notice to the drawer (the person who issued the cheque) asking them to pay the amount of the cheque within 15 days. If the drawer fails to pay the amount within 15 days, you can file a complaint with the magistrate’s court.
What happens in a cheque bounce case
Once you have filed a complaint with the magistrate’s court, the court will issue a summons to the drawer. If the drawer appears in court and pleads guilty, the court can convict them and pass a sentence. If the drawer pleads not guilty, the court will hold a trial. If the drawer is found guilty, the court can punish them with imprisonment for up to two years, or a fine that can extend to twice the amount of the cheque, or both.
