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Cheque Bounce (Section 138 NI Act)

Cheque Bounce (Section 138 NI Act)

Banking & Financial Legal Services

Service Overview

Cheque Bounce (Section 138 NI Act) involves legal action in cases where a cheque is dishonoured due to insufficient funds or other statutory reasons, attracting criminal liability.

Service Overview

Cheque Bounce cases under Section 138 of the Negotiable Instruments Act arise when a cheque issued towards the discharge of a legally enforceable debt or liability is dishonoured by the bank due to insufficient funds, account closure, or similar reasons.

The law mandates issuance of a statutory legal notice within prescribed time limits, demanding payment from the drawer. Failure to make payment within the stipulated period enables filing of a criminal complaint before the competent Magistrate's Court.

Proceedings may result in monetary compensation, a fine, or imprisonment as per statutory provisions. Timely compliance with notice and filing requirements is critical to maintain the complaint.

This service includes drafting and issuing legal demand notices, filing cheque bounce complaints, defence representation in Section 138 cases, settlement negotiation, compounding of offence, and appellate representation.

The objective is to ensure lawful enforcement of financial claims, protect commercial credibility, and secure structured resolution of payment disputes.

FREQUENTLY ASKED

It is a provision that criminalises dishonour of a cheque issued for the discharge of a legally enforceable debt.

Yes, statutory notice must be issued within prescribed timelines.

Yes, parties may settle and compound the offence.

The court may impose fine, compensation, or imprisonment as per law.

Related Topics

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