If a cheque given to you by someone has bounced here are the precaution which you may take before dealing with the cheques or money transactions to avoid any fraud.
1. Name and complete address of the person who has given you the cheque- It is important if a third person is giving you a cheque, you must take a copy of his photo I.D which is a conclusive proof of his residence, because the person who you are dealing with will not be liable in case during that transaction the cheque is bounced.
2. Go for NEFT/RTGS/Demand Draft-This is more secure form of payment, Nowadays online transaction is both safe and secure way to transact.
3.If the cheque is a security-Remember if the cheque is given to you as a security then if that cheque is bounced, it may not constitute any offence under negotiable instruments,rather the remedy would lie under the Indian Penal code,under the offence of fraud and cheating. see here
4. However after all this your cheque has bounced the first thing you would be doing is to send a legal notice to the opposite party, do it even though the other party is assuring you to pay back,because it is a delaying tactic as cheque is valid for 3 months.
5. If your cheque book is lost-Immediately contact the bank to avoid misuse of your cheques.
Legal Advice-Click here
Advocate Nitish Banka is a first-generation lawyer with over a decade of courtroom experience, known for his strategic defense in complex matrimonial and criminal litigation. He is the founder of Lexspeak Legal, a premium litigation practice that focuses on false 498A/DV cases, maintenance disputes, quashing petitions, discharge, counter-cases, and high-stakes matrimonial strategy for Indian and NRI clients.
Widely recognised for simplifying complex legal processes
This website presents informative, well-organized, and easily accessible content. The professional design combined with clear navigation enhances the visitor experience. Thank you for your dedication to building a useful and high-quality website for many.