If you write a cheque and don't have enough money in your account, or if your bank refuses to pay it, it's a crime. You can be punished with jail time or a fine, or both. The fine can be up to double the cheque amount.
Imprisonment up to 2 years, or fine up to twice the cheque amount, or both.
A gives B a cheque for ₹5,000. B deposits it, but A's account has only ₹2,000. The cheque bounces. A has committed an offense.
- •You have the right to send a legal notice to the person who issued the bounced cheque.
- •You can file a complaint in court if the person doesn't pay up after the notice.
- •You can claim the cheque amount, interest, and legal expenses.
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Negotiable Instruments Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.