Banking

How to escape from cheque bounce case

To escape or defend a cheque bounce case under Section 138 of the Negotiable Instruments Act, you can employ several legal strategies:
  • Respond to the legal notice within 15 days to clarify your position and potentially resolve the matter amicably.
  • Prove the cheque was issued as security or a gift rather than for a legally enforceable debt.
  • Demonstrate procedural lapses, such as the payee missing the 30-day deadline to issue a notice.
  • Argue material alterations or mismatched signatures if the cheque was tampered with.
  • Settle the case through compounding or mediation to stop criminal proceedings.

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