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WHAT IS CHEQUE BOUNCE? WHAT REMEDY THE PERSON HAS?

When the issuer of the Cheque failed to honour the Cheque [which he issued to the receiver] and thereafter should he failed to return the money he owe to the receiver then the same amounts to Cheque Bounce.

Section 138 of The Negotiable Instruments Act [in short, NI Act] deals with the situation to handle Cheque Bounce cases. Four important steps to be followed by the Petitioner so to comply with the ingredients of Section 138 of NI Act;

  1. There must be Cheque Bounce – [No matter, it might be for any reason].
  2. The Receiver of the Cheque must issue Notice to the issuer of the Cheque within 30 days from the date of Cheque Bounce [from the date of Return Memo issued by the Banker].
  3. Fifteen days should be given to the issuer of the Cheque to return the money from the date of receipt of the Notice by him.
  4. If money was not returned within the given 15 days, then from the 16th day and within 30 days from than, a Complaint be filed in the Fast Track Court or in an appropriate Court purposefully deal with this subject under Section 138 read with Section 142 of The Negotiable Instruments Act.

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