LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

brahma (student)     23 May 2024

Cheque bounce case

My  Friend who is residing in Andhra Pradesh is accused in different cheque bounce cases from different financial institutions (one is Muthoot Finance and another is Shiksha Finance). Both trails are running  parallel in different states (one is in Hyderabad and other is in Chennai). He is not a position pay cheque amounts. He doesn't have any property. If his conviction proved how he can be sentenced in different cases in cheque bounce?


 8 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 May 2024

The punishment for a cheque bounce in India is as follows:

  1. Criminal Proceedings:

  2. Civil Proceedings:

Remember that the Negotiable Instruments Act, 1881, governs the rules related to cheque bounce, and it’s essential to handle financial transactions carefully to avoid such situations. If you find yourself dealing with a bounced cheque, consider seeking legal advice promptly. 

brahma (student)     23 May 2024

He sentenced  two times or at a time in different cases of different states 

T. Kalaiselvan, Advocate (Advocate)     23 May 2024

If your friend is found guilty of the offences charged against him by both the courts then he may have to face conviction and sentences as passed by both the courts.

He may have to undergo imprisonment by the court sentencing first and after that he may have to undergo imprisonment in the other state.

Parasar   24 May 2024

We Need Some more facts drop us an email at sarvepallilegalatgmaildotcom


brahma (student)     24 May 2024

In cheque bounce case After completion of imprisonment by the court order what happens to financial liability ? Whether it is still existed or closed?

Parasar   24 May 2024

it still exists, if he is from nellore, he can meet me

sridhar pasumarthy (ADVOCATE)     26 May 2024

To my knowledge, imprisonment is up to two years


Aadil (Student)     27 May 2024

Dear Brahma,


Thank you for your query! I am Aadil and I will try to answer your question.


The short answer to your query is YES. He can be imprisoned or fined or both.

Cheque bounce cases in India are governed by the Negotiable Instruments Act, 1881, under its Section 138. As per the same, a cheque bounce case is filed when a cheque drawn by a payee for the purpose of fulfilling any debt or liability is returned by the bank unpaid due to insufficient funds in the account or because it exceeded the amount that was agreed to be paid by the bank as per an arrangement with the drawee.

Punishment for the same are as follows: 

  1. Imprisonment (Which may extend to two years)

  2. Fine (Which may extend to twice the amount of the cheque)

Or both.

It must also be noted that as per Section 140 of the same Act, the fact that the drawer had no reason to believe that the cheque may be dishonoured on presentment for the above reasons shall not be considered a defence.

I hope this helps. Thank you for your time and patience!




Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register