Cheque Bounce Case
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  • Reads 2
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  • Parts 1
  • Time <5 mins
Ongoing, First published Aug 01, 2022
Part-1
The ingredients of the offence as contemplated under Sec.138 of the Act are as under: 
1.	The cheque must have been drawn for discharge of existing debt or liability. Legally recoverable debt.
2.	Cheque must be presented within 3 months or within validity period whichever is earlier.
3.	Cheque must be returned unpaid due to insufficient funds or it exceeds the amount arranged or any other vaild reason as per the banking norms.
4.	Fact of dishonour be informed to the drawer by notice within 30 days from the date of receipt of bank memo.
5.	Drawer of cheque must fail to make payment within 15 days of receipt of the notice.
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