Lawyer for Cheque Bounce Case

• April 12, 2024
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Bouncing a check is an infraction that is punishable by a fine up to twice the amount of the check, up to two years in prison, or by both, as per Section 138 of the Negotiable Instruments Act of 1881 ("Act"). When the payee presents a check to the bank for payment and the bank returns it unpaid with a memo indicating insufficient funds, the check is said to have bounced. Even though a check may bounce for a variety of reasons, the Act considers it an act of fraud if the drawer's account is insufficiently funded. The bank must write a return memo outlining the specifics of its decision to deny the provided check due to insufficient funds.

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