Introduction
In Raipur’s busy marketplaces and expanding business hubs from Pandri cloth traders to transporters in Tatibandh payments through cheques are still a trusted way to do business. However, when a cheque is dishonoured, the situation quickly turns from routine to stressful.
A bounced cheque not only disrupts business cash flow but also creates serious legal consequences under Indian law. Many Raipur traders and entrepreneurs face this issue every month cheques returned for “insufficient funds,” “signature mismatch,” or “account closed.”
But what most people don’t realize is that the law offers a clear and powerful remedy for such cases under Section 138 of the Negotiable Instruments Act, 1881. With the right steps and timelines, you can recover your money legally and even hold the issuer accountable.
This guide simplifies what to do when your cheque bounces in Raipur from collecting evidence to filing a case so you don’t miss any crucial step.
1. What Is a Cheque Bounce?
A cheque bounce (or dishonour) happens when a bank refuses to process a cheque due to reasons such as:
- Insufficient funds in the drawer’s account
- Signature mismatch
- Account closed or payment stopped by the drawer
- Overwriting or technical errors on the cheque
When this occurs, the bank returns the cheque to the payee with a “Cheque Return Memo” stating the reason for non-payment.
2. First Step – Collect the Return Memo
Once your cheque is dishonoured, your bank will issue a Cheque Return Memo. This document is the proof of cheque bounce, and it is essential for any legal action.
Keep the following ready:
- Original cheque
- Bank’s return memo
- Record of transaction details or invoice
3. Send a Legal Notice to the Drawer through your lawyer
Under Section 138 of the Negotiable Instruments Act, the payee must send a legal notice to the person who issued the cheque.
Requirements:
- Must be sent within 30 days of receiving the bank memo.
- The notice should demand payment of the cheque amount within 15 days of receipt.
Example: A Raipur trader received a ₹2 lakh cheque that bounced for “insufficient funds.” His lawyer sent a demand notice to the issuer asking for payment within 15 days, warning of legal action under Section 138.
4. File a Complaint in the Raipur Court
File the complaint within 30 days after the 15-day notice period expires.
5. Civil Recovery Option
Apart from criminal proceedings, you may also file a civil suit for recovery of the cheque amountwith interest and legal expenses.
This helps you claim your rightful money even if the drawer delays payment through court.
6. Documents Required
· Copy of cheque and return memo
·Copy of legal notice and delivery proof
·Complaint affidavit
Conclusion
A cheque bounce isn’t just a financial inconvenience it’s a legally punishable offence.
By acting promptly sending a proper legal notice, maintaining documents, and filing the complaint within time you can protect your financial interests effectively.
In short, every dishonoured cheque deserves a legal response, not just a verbal reminder.
Whether you’re a business owner, landlord, or service provider, understanding your rights ensures that your hard-earned money is protected by law.
A well-handled cheque bounce case not only recovers your dues but also sends a clear message. Business in Raipur runs on trust, and the law stands firmly behind it.
– Written and Edited by – Shruti Goyal (B.A.LL.B)
