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;
- There must be Cheque Bounce – [No matter, it might be for any reason].
- 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].
- 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.
- 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.