What Are The Charges If Any Cheque Bounces In India

If a cheque bounces in India, the drawer of the cheque can be charged under Section 138 of the Negotiable Instruments Act, 1881. This section states that if a cheque is dishonored due to insufficient funds or any other reason, the drawer of the cheque can be held liable for an offense if they fail to pay the amount within 15 days of receiving a legal notice from the payee.

If found guilty, the punishment for an offense under Section 138 of the Negotiable Instruments Act can be imprisonment for a term up to two years, or with a fine, or with both. Additionally, the court may also order the drawer to pay the payee the amount of the cheque, along with any additional costs or damages.

It is important to note that the above is the criminal liability and there can be civil liability as well where payee can file the civil suit for recovery of the amount.

 
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