Cheque Bounce – What to Do
Learn exactly what to do when a cheque bounces in India. Step-by-step legal process, documents required, and time limits for filing a Section 138 case.
A cheque bounce occurs when a bank refuses to honour a cheque due to reasons such as insufficient funds, signature mismatch, account closure, or payment stopped by the drawer.
Common Reasons
- Insufficient balance
- Signature mismatch
- Account closed
- Stale cheque
- Payment stopped
What should you do?
- Obtain the cheque return memo from the bank.
- Send a legal notice to the issuer within the prescribed legal time.
- Wait for the payment period after the notice.
- If payment is not made, file a complaint before the competent court.
Documents Required
- Original cheque
- Bank return memo
- Legal notice
- Proof of delivery
- Bank statements (if required)
Frequently Asked Questions
Can I present the cheque again?
Yes, provided it remains valid.
Is cheque bounce a criminal offence?
It may attract legal action under applicable law depending on the circumstances.
How long does the process take?
It varies depending on the court and specific facts of the case.