Cheque Bounce & Recovery: Understanding Section 138 of the Negotiable Instruments Act
A cheque bounce can have serious legal consequences under Indian law. Section 138 of the Negotiable Instruments Act, 1881 provides the legal framework for addressing dishonoured cheques due to insufficient funds, stop payment, or other reasons. This provision ensures financial accountability and protects…
In the modern business and financial world, cheques continue to be one of the most widely used instruments for payments and transactions. However, when a cheque is dishonoured due to insufficient funds, signature mismatch, or other reasons, it not only disrupts financial commitments but also raises serious legal consequences. This is where the Cheque Bounce…