Legal steps when someone's cheque to you bounces
Step-by-Step Guide
Collect the cheque return memo from your bank stating the reason for dishonour (e.g., insufficient funds). This is essential evidence.
Legal Basis
- •Negotiable Instruments Act 1881 — Section 138
- •NI Act — Section 141 (company liability)
- •NI Act — Section 142 (cognizance timeline)
Important Numbers
This playbook provides general legal information. Laws vary by state. For complex matters, consult a qualified lawyer. Free legal aid: NALSA 15100.