Cheque Bounce / Dishonour of Cheque

If someone gives you a cheque and it bounces (gets dishonoured by the bank due to insufficient funds or any other reason), it is a criminal offence. You must send a legal notice within 30 days of the cheque bouncing. If the person doesn't pay within 15 days of receiving the notice, you can file a criminal complaint in court.

• A gives B a cheque for Rs. 50,000 to repay a loan. The cheque bounces due to insufficient funds. B sends a legal notice to A. A fails to pay within 15 days. B can file a criminal complaint under Section 138 NI Act.