A bounced cheque isn’t just a financial inconvenience — it’s a legal matter that can severely impact your business cash flow and credibility. In India, cheque dishonour is a punishable offence under Section 138 of the Negotiable Instruments Act, 1881.
At Corpsage Legal, we assist individuals and businesses in taking swift and lawful action in cases of cheque bounce or dishonour.
A cheque bounce occurs when a bank declines to honour a cheque due to reasons such as:
According to Indian law, dishonouring a cheque issued for repayment of a legally enforceable debt or liability is an offence.
🔗 Read about Section 138 – Negotiable Instruments Act
Court Proceedings and Possible Penalties : Once the complaint is admitted, the court may issue summons. If proven guilty, the drawer may face:
The court may also order compensation to the complainant. 🔗 Understand the Cheque Bounce Penalty in Detail – RBI FAQ
Civil Remedies Alongside Criminal Action : You may also initiate a civil suit for recovery of the cheque amount under the Code of Civil Procedure, 1908, particularly if the cheque was part of a commercial transaction or contract.
Q1: Can I send a legal notice via email or WhatsApp?
While traditional notice via post is recommended, courts are increasingly accepting digital proof — but it’s best to consult a lawyer for proper service methods.
Q2: What if the cheque was given as a gift or without legal liability?
Cheque bounce law applies only to legally enforceable debts or liabilities — not gifts, donations, or blank cheques without purpose.
Q3: Can I claim interest or legal expenses?
Yes. You can claim interest, court costs, and legal fees under civil recovery proceedings
To connect with us for contract management services for your business, follow any of the below-mentioned ways:
Fill up the following form
Fill up the following form with your query & questions, and we shall send you a detailed email response within 24 hours.
At Corpsage Legal LLP, we provide all-inclusive Legal Process Management Services to companies. Herein, we become their sole contact for all the legal requirements related to their business.
© 2025 CorpSageLegal. All rights reserved.
© 2025 CorpSageLegal. All rights reserved.
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