Section 138 of the Negotiable Instruments Act, 1881 deals with the dishonor of a cheque due to insufficient funds. In simple terms, if a cheque bounces when deposited, the drawer (person issuing the cheque) can face criminal prosecution. Definition of a Cheque Bounce A cheque bounce occurs when the bank refuses to honor the cheque, … Continue reading What to Do If You Receive a Legal Notice Under Section 138 of the Negotiable Instruments Act