What is a Cheque Bounce Offence?
When a cheque is returned unpaid by the bank due to insufficient funds or account closure, it constitutes an offence under Section 138 of the Negotiable Instruments Act, 1881. This is both a criminal and civil matter, allowing the payee to recover the amount while also seeking punishment for the drawer.
Steps to Take After a Cheque Bounce
- Obtain the Dishonour Memo from your bank immediately
- Send a Legal Demand Notice within 30 days of receiving the bank memo
- Wait 15 days for payment after the notice is served
- File a Criminal Complaint before the Magistrate Court within 30 days if payment is not made
Punishment for Cheque Bounce
The drawer can face imprisonment of up to 2 years, a fine up to twice the cheque amount, or both. Additionally, the court can order payment of compensation to the payee.
Why Choose Opulent Law Solutions?
Advocate Abhinav Mittal has successfully handled over 500 cheque bounce cases. We ensure your demand notice is legally airtight and represent you aggressively before the Magistrate Court to secure maximum compensation.
Contact us today at +91-98765 43210 for a free initial consultation.