New Delhi, May 1 -- Cheques remain a widely used payment instrument in India, but when they bounce, the consequences can be serious. A dishonoured cheque does not just trigger financial disputes; it can quickly escalate into legal proceedings, including the filing of criminal cases. Even a single lapse in maintaining sufficient balance may lead to legal notices, court appearances and, in severe instances, imprisonment.

Here is a breakdown of the rules to help you handle such cases.

The basic concept relates to Section 138 of the Negotiable Instruments Act. This section elaborates on how cheque dishonour is a criminal offence when it is caused by:

The objective here is straightforward: the individual who issues the cheque is responsible...