Section of the Negotiable Instruments Act, deals with cheque bounce (cheque dishonour) cases. If a person issues a cheque and it is returned unpaid by the bank due to insufficient funds, account closed, stop payment, or any other valid reason, legal action can be initiated against the drawer of the cheque.
After the cheque is dishonoured, collect the Cheque Return Memo from the bank. This document states the reason for dishonour and is important for legal proceedings.
The payee must send a written legal notice to the drawer within 30 days from the date of receiving the cheque return memo.
After receiving the legal notice, the drawer has 15 days to make the payment of the cheque amount.
If the payment is not made within 15 days, a criminal complaint can be filed before the appropriate Judicial Magistrate Court.
If the accused is found guilty, the court may impose:
Imprisonment up to 2 years, or
Fine up to twice the cheque amount, or
Both imprisonment and fine
The cheque must be presented within its validity period (generally 3 months).
The legal notice must be properly drafted and served.
The complaint must be filed within the prescribed limitation period.
Settlement is possible at any stage of the case.
If you are looking for professional legal support for cheque bounce cases in Lucknow, Manoj Associate and Law Firm provides complete assistance, including:
Legal notice drafting
Filing of court complaints
Bail and defense support
Settlement negotiations
Full court representation
With experienced legal guidance, you can confidently pursue or defend a cheque bounce case under Section 138 of the Negotiable Instruments Act.
