What is cheque bounce case

A cheque bounce case in India occurs when a bank refuses to process a cheque, returning it unpaid to the payee. Governed by Section 138 of the Negotiable Instruments Act, 1881, it is a criminal offense if the cheque was issued to discharge a legally enforceable debt. Common reasons include:

• Insufficient funds in the drawer's account
• Signature mismatch
• Account closure
• Technical errors like overwriting or stale dates

Consequences for the drawer can include imprisonment for up to two years, a fine up to twice the cheque amount, or both.