In what cases cheque bounce does not amount to an offence?

Cheque bounce is an offence under S/138 of Negotiable Instruments Act (N.I. Act). However, there exist a few exceptions to it, namely:

  • If the cheque is forged; (Section 464 Indian Penal Code)

  • If the cheque cannot be traced back to the cheque book number;

  • If the cheque was delivered by force, fraud, undue influence, coercion or misrepresentation;

  • If the cheque was issued by a person of unsound mind or lunatic or idiot;

  • If the drawer becomes insolvent;

  • If the cheque was not issued for discharge of a legally enforceable debt or liability but merely as a security, advance or loan.

It is important for you to consult the expert cheque bounce advocates to defend your case to escape the legal consequences.


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