Cheque Bounce Cases
Cheque bounce cases fall under the purview of negotiable instruments law, and occur when a cheque issued by a person is dishonored due to insufficient funds or other reasons. Such cases are governed by the Negotiable Instruments Act, and the payee can initiate legal action against the drawer. The law aims to ensure the credibility of commercial transactions and protect the payee’s rights. The payee must serve a notice demanding payment within 30 days of the cheque bounce, and if the drawer fails to comply, a criminal complaint can be filed. However, certain conditions and defenses may apply depending on the specific circumstances.
