What to do if cheque bounces

If a cheque you issued or received bounces, you should first contact the other party to resolve the issue through a re-payment or by issuing a fresh cheque. If you are the recipient and the issue is not resolved:

• Obtain the Cheque Return Memo from the bank stating the reason for dishonour.
• Send a formal legal notice to the drawer within 30 days of receiving the memo, demanding payment within 15 days.
• If payment is still not made, you can file a criminal complaint under Section 138 of the Negotiable Instruments Act within 30 days of the notice period's expiry.