A cheque bounce occurs when a bank returns a cheque unpaid due to insufficient funds or account-related issues. Such incidents often arise during business or personal transactions. A dishonoured cheque can lead to serious legal action and may affect your financial credibility.
At Advocate Rakesh Gaur’s law firm, we provide professional legal assistance in cheque bounce matters. We represent both payees and drawers and work towards quick, lawful resolutions. Our experienced cheque bounce lawyers in Delhi handle cases with precision and discretion.
What Is a Cheque Bounce?
A cheque may bounce for several reasons, including:
Common Reasons for Cheque Bounce
Insufficient Funds: The account balance does not cover the cheque amount.
Signature Mismatch: The bank finds a mismatch in the drawer’s signature.
Account Closed: The drawer closes the account before presentation.
Post-Dated or Stale Cheques: The cheque is presented before or after its validity period.
Incorrect Details: Errors in name, amount, or figures cause rejection.
Legal Consequences of Cheque Bounce in India
Cheque bounce cases involve both criminal and civil liability under the law.
Criminal Liability Under Section 138 NI Act
Section 138 of the Negotiable Instruments Act, 1881 makes cheque bounce a criminal offence. Courts may impose:
Imprisonment up to two years, or
A fine up to twice the cheque amount, or
Both imprisonment and fine.
Civil Liability for Recovery
The payee can also file a civil suit to recover the cheque amount along with damages.
Impact on Reputation
Repeated cheque bounce incidents can damage personal and business credibility. Early legal action helps avoid long-term consequences.
How to Handle a Cheque Bounce Case
Steps for the Payee (Cheque Holder)
Issue Legal Notice: Send a demand notice within 30 days of bank memo receipt.
File a Complaint: If payment is not made within 15 days, file a case before the Magistrate under Section 138.
Steps for the Drawer (Cheque Issuer)
Settle the Amount Quickly: Immediate payment can prevent litigation.
Reply to Legal Notice: Respond within the statutory time limit.
Prepare a Legal Defence: If valid reasons exist, present supporting evidence before the court.
Legal Procedure in Cheque Bounce Matters
Issuance of Legal Notice
The payee must send a written demand notice within the prescribed time.
Filing of Criminal Complaint
If the drawer fails to comply, the payee can file a complaint within one month.
Court Proceedings
The court examines documents, evidence, and witness statements before passing an order.
Settlement or Compounding
Courts allow settlements in many cases. Timely compromise can save time and legal costs.
How Our Law Firm Helps in Cheque Bounce Cases
Expert Legal Advice
We guide clients through every legal step with clarity and accuracy.
Court Representation
Our advocates present strong arguments before trial courts and appellate courts.
Legal Notices & Documentation
We draft legally sound notices and ensure strict compliance with timelines.
Defence Strategy
We analyse facts, challenge weak evidence, and protect clients from wrongful prosecution.
Debt Recovery Support
We assist payees in recovering dues through lawful and effective means.
Why Choose Advocate Rakesh Gaur for Cheque Bounce Matters?
Strong Command Over NI Act
Our firm has in-depth expertise in Negotiable Instruments Act cases.
Proven Legal Representation
We handle both prosecution and defence with equal efficiency.
Client-Focused Approach
We prioritise transparency, communication, and tailored legal solutions.
Prompt & Result-Oriented Action
We act swiftly to reduce legal stress and financial impact.
If you need reliable legal support, consult our experienced cheque bounce lawyers in Delhi for professional and timely assistance.
