Cheque Dishonour
Non-payment of a cheque by the drawee bank, giving rise to criminal liability under Section 138 of the Negotiable Instruments Act on fulfilment of statutory conditions.
Relevant Legislation
- The Negotiable Instruments Act, 1881
Frequently Asked Questions
What should I do if someone's cheque to me has bounced?
The holder must typically issue a written demand notice to the drawer within the statutory period after receiving the bank's dishonour memo, demanding payment. If the amount is not paid within the period allowed by the notice, a criminal complaint under Section 138 of the Negotiable Instruments Act may be filed.
What defences are available in a cheque bounce case?
Common defences include disputing the existence of a legally enforceable debt, challenging service or validity of the statutory demand notice, or showing the complaint was filed outside the limitation period — the specific facts of each case determine which, if any, defence applies.
Related Concepts
General legal information for reference only, reviewed for accuracy but not a substitute for advice from a qualified advocate on your specific facts.