Types of Cheque Bounce

  • When a party doesn’t fulfill their duties on time.
  • Example: A vendor fails to deliver goods on the agreed date.
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  • When a party fails to deliver a significant part of what was promised.
  • Example: Buying a smartphone online and not receiving all the promised accessories.
  • When most of the contract is fulfilled, but a small part is left incomplete.
  • Example: An architect designs a house but misses a minor detail.
  • When a party indicates they won’t be able to fulfill the contract before the deadline.
  • Example: A service promised for Tuesday morning is now delayed by several days.

Frequently Asked Questions

What is a cheque bounce?

A cheque bounce occurs when a bank refuses to honor a cheque due to insufficient funds, expired validity, or other reasons.

Common reasons include insufficient funds, expired validity, stop payment instructions, damaged cheque, signature mismatch, and amount mismatch.

Send a demand notice to the cheque issuer within 30 days of receiving the cheque return memo.

The issuer has 15 days to settle the payment.

You can file a criminal complaint in court within 30 days of the 15-day period’s expiry.

Legal notice copy, original bounced cheque, cheque return memo, and proof of notice delivery.

Charges vary by bank. For example, SBI charges ₹150-₹500 + GST depending on the amount and reason.

Offenders can face imprisonment for up to two years, a fine up to twice the cheque amount, or both.

Yes, courts may ignore delays if sufficient cause is shown.

Yes, you can file a civil suit for recovery of the cheque amount, including costs and lost interest.