Check bouncing 138 Case

The 138 Negotiable Instruments Act, commonly known as the "Check Bouncing Case," refers to legal proceedings initiated against individuals who issue checks that are subsequently dishonored due to insufficient funds or other reasons. Section 138 of the Negotiable Instruments Act in India specifically addresses the offense of dishonor of checks, making it a criminal offense punishable by imprisonment or a fine. When a check bounces, the payee has the right to initiate legal action by filing a complaint under Section 138. The complainant must provide a notice to the drawer of the dishonored check within 30 days of receiving information about the bounce, giving the drawer an opportunity to make the payment within 15 days. Failure to comply with the notice can result in legal consequences for the drawer, including prosecution and penalties. The 138 case serves as a deterrent against fraudulent practices and promotes the integrity of financial transactions.