If You’ve Been the Victim of a Bounced Cheque, You Need us!

Cheque bounce cases are governed by Section 138 of the Negotiable instruments Act, 1881. A cheque bounces when a bank doesn’t honour a payment. When a cheque is returned by the bank unpaid, it is said to be dishonoured or bounced. A few of the reasons are wrong signatures, mismatch of figures written on the cheque (in words and figures), and overwriting. These issues are minor and can be solved without the court’s intervention. A ajor cause for concern is when a cheque bounces due to lack of funds in the drawer’s account.

If you have received a cheque that has bounced, you have two options. You can send the person a demand notice and then, if there is no response after 15 days, you can eventually follow up by filing a complaint in the court.

To add to this, in case an action is not taken against the defaulter by the receiver within the prescribed time, it can also lead to lack of remedy for the receiver of the cheque as a case for cheque bounce is time-bound. Thus, it is important to address a cheque bounce case as soon as possible in order to avoid all the consequences involved

 

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