Bounced Promises: Legal Accountability Under Section 138 of the NI Act
A cheque bounce is more than just a financial inconvenience—it’s a legal offense under Section 138 of the Negotiable Instruments Act, 1881. This law was designed to ensure the credibility of cheque-based transactions and protect the interests of payees. A cheque is said to have bounced when it is returned unpaid due to reasons like
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“Cheque-Mate: Understanding the Consequences of a Bounced Cheque”
In the world of business transactions and financial dealings, a cheque is often considered a symbol of trust and a binding promise of payment. But what happens when that promise is broken? A bounced cheque—formally known as dishonour of cheque—not only disrupts cash flow but also carries serious legal consequences under Indian law. Whether you’re
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