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Writer's picturethelila500
Jan 7, 20233 min read

How Do I Fight A Case Of Cheque Bounce Against State Government

When there are insufficient funds in the bank account, a cheque bounce is actually viewed as an act of fraud. The bank must write a return memo outlining the specifics of its decision to deny the provided check due to insufficient money in the account. When this happens, the payee of the cheque may send the drawer a notice of cheque bounce asking for payment of the cheque amount.


Cheque bounces are a serious offense, according to Section 138 of the Negotiable Instruments Act of 1881. An individual who has committed a cheque bounce receives a fine up to double the amount of the cheque, a two-year prison time, or both. When the payee presents a cheque to the bank for processing the payment, and the bank rejects and returns the cheque with a memo indicating that the account does not have enough funds, the cheque gets bounced.


The Negotiable Instruments Act of 1881


Section 138- Talks about dishonor of cheques where funds are found to be insufficient in the bank or if the amount exceeds the arrangement made between the bank and the account holder. It is assumed that the account holder broke the law by refusing to pay the cheque amount. Two years in prison, a fine that may be double the amount of the cheque, or both are the maximum penalties permitted by the Act.


Section 139- It talks that the accused is presumed to be innocent unless and until the contrary is established. The accused in such a case offers a defense that could raise doubt on the validity of the debt, which could prevent the prosecution from proving a case under Section 138.



Fighting a Case of Cheque Bounce against State Government


Since the burden of proof in a cheque bounce case rests with the accused, he may employ the defenses to establish his innocence and issue a not-guilty plea. The accused may invoke any of the following defenses. There are several ways in which one can fight a cheque bounce case against the state government. They are:

  • When a Cheque is given as Security rather than to Pay off a Debt

The case would not be an exception under Section 138 of the Negotiable Instruments Act unless the accused can demonstrate that the cheque was given as a security deposit rather than to discharge any debt or liability of the state government.

  • A friendly Loan is offered for the Missing Funds

Section 138 of the Negotiable Instruments Act does not apply to the need to pay the unexplained cash amount. Therefore, a loan of missing funds for whatever amount would not be eligible for legal recovery.

  • The Accused Disputes the Signature on the Cheque

If the accused draws the court's attention against the state government to the mismatch of the signature on the cheque, only then the banker could establish evidence of the mismatch of the signature on the cheque.

  • "Stop Payment" as directed by the drawer if there are insufficient funds for other reasons

The reason the cheque bounced, in accordance with a complaint made by the appellant under Section 138 of the Negotiable Instruments Act, was that the drawer requested to halt the payment. However, if the accused could demonstrate sufficient funds with the state government to pay the cheque, but that other circumstance undoubtedly led to the payment of cash being withheld, this would not apply in this case.

  • False Case of Cheque Bounce

The accused has to prove that the state government has filed a false cheque bounce lawsuit and can also file a civil case for cheque bounce to seek compensation for the false case and the losses and expenses paid for handling the false cheque bounce cases.


You will need a lawyer to draft legal notices and make you fight against the state government from any cheque bounce cases. Cheque Bounce Lawyers Hyderabad can be appointed if you want to fight against the state government in any cheque bounce cases in Hyderabad. Cheque Bounce Lawyers Chennai can be appointed if you want to fight against the state government for any cheque bounce cases in Chennai. Likewise, Cheque Bounce Lawyers in Ahmedabad can provide the best defense available to their client to fight against the state government in any Cheque Bounce Lawyers Ahmedabad.


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