Legal Eagle's Eye

A cheque bounce can happen for many reasons including insufficient funds, cheque validity expiration, damaged cheques, overwriting, etc. The Negotiable Instruments Act of 1881's Section 138 addresses incidents involving bounced cheques and specifies penalties for those found responsible. Let's understand the legal implications of cheque bounce in India.   Legal Implications of Cheque Bounce Cheque bounce is a criminal offence in India under the stated Section 138 of the Negotiable Instruments Act. As a result, if a complaint is filed in court, the defaulter may be depending on the situation, get a prison sentence or a penalty that is up to twice the value of the cheque. When the court determines that the violation was serious, it may impose also. In such cases, you need to consult the experienced Corporate Dispute Lawyer in Gurgaon to guide you through the process. Required Documents in case of Cheque Bounce   To file a complaint against a party in a matter involving a returne...

Bank cheques are a standard way to conduct financial transactions. This is true since it is practical, does not call for a lot of formalities, and serves as a reliable payment receipt.  However, not everything is as clear-cut as it ought to be. Transactions made with cheques occasionally fail to complete for a variety of reasons, causing uncertain cheque  bounces. Here is everything you need to know about the procedures for handling a bounced check and how a corporate dispute lawyer in Gurgaon can assist you in resolving the issues that expertise. What is Cheque Bounce? The Negotiable Instruments Act, 1881, Section 138, governs cases involving returned cheques. When a bank returns a cheque unpaid or does not honor it, it is referred as bounced. Wrong signatures, mismatched numbers on the cheque ,invalid dates, tores and overwriting are a few of the causes. These are minor problems that can be resolved without the involvement of the court. When a financial instrument fails due...