Common Reasons for Cheque Bounce and How to Avoid Legal Troubles

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Legal Review and Consultation: Importance of Seeking Legal Advice When Drafting or Executing a Will to Ensure Compliance with Applicable Laws and Regulations.

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A cheque bounce is one of the most common legal issues individuals and businesses face in India today. It occurs when a cheque issued by the drawer (the person who writes the cheque) cannot be processed due to various reasons, such as insufficient funds or incorrect details. Under Section 138 of the Negotiable Instruments Act, 1881, a cheque bounce can lead to serious legal consequences, including criminal charges and financial penalties.