Cheque bounce cases are a common financial and legal issue in India. Such matters arise when a cheque is issued by an account holder and that cheque is returned and unpaid by the bank due to various reasons such as insufficient funds, signature issues, and so on. Cheque Bounce Matters. Cheque bounce matter in Delhi.

These cases are governed by Section 138 of the Negotiable Instruments Act, 1881.

Cheque Bounce

A cheque is bounced when a bank refuses to honor that cheque. This can occur for several reasons, leading to financial loss and legal consequences for the person who issued the cheque.

Some Common Reasons for Cheque Bounce

Insufficient Funds: The account does not have enough balance to cover the cheque amount, or the balance is too low in the account to cover the cheque amount and transfer to the given account.

Signature Mismatch: The drawer’s signature does not match the signature in the bank or the last updated signature in the bank.

Account Closure: The cheque is drawn on a closed bank account. If a bank account is already closed before submitting the cheque to the bank.

Stale Cheque: The cheque is presented after its validity period (usually 3 months from the date of issuance). Usually, three months from the given date on the cheque, so after that period, if you submit that cheque, it will bounce.

Alterations on the Cheque: Unauthorized modifications or overwriting. Sometimes it can happen.

Some other reasons can also be there, as per the circumstances.

We Need to Pay Attention

The drawer instructs the bank to stop payment for the cheque. Issues like overwriting, illegible handwriting, or incorrect date format.

Legal Framework for Cheque Bounce Cases Section 138 of the Negotiable Instruments Act, 1881.

Cheque bounce matter in Delhi

Disclaimer: This article is for educational and informational purposes only. It provides a general understanding of legal remedies but does not constitute legal advice. For specific legal guidance, consult a legal expert.