Section 138 of the Negotiable Instruments Act, 1881 deals with cheque bounce cases in India. It penalizes the dishonor of a cheque due to insufficient funds or if the drawer stops payment without a valid reason. The payee must send a legal notice within 30 days of receiving the bank's dishonor memo, demanding payment within 15 days. If the drawer fails to pay, the payee can file a complaint in court within 30 days. Punishment includes imprisonment of up to 2 years, a fine up to twice the cheque amount, or both.<br/> <br/>

Section 138 of the Negotiable Instruments Act, 1881 deals with cheque bounce cases in India. It penalizes the dishonor of a cheque due to insufficient funds or if the drawer stops payment without a valid reason. The payee must send a legal notice within 30 days of receiving the bank's dishonor memo, demanding payment within 15 days. If the drawer fails to pay, the payee can file a complaint in court within 30 days. Punishment includes imprisonment of up to 2 years, a fine up to twice the cheque amount, or both. 

LAWRITE OFFICIAL’s First Podcast

Episode 1 Section 138 Cheque Bounce

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LAWRITE OFFICIAL’s First Podcast

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