Cheque bounce or dishonour cases are governed by the Negotiable Instruments Act, 1881. When a cheque is dishonoured, the drawer has to face its legal consequences. 

The common cause of cheque dishonour is ‘insufficient funds’ and ‘payment stopped by drawer’. The conviction rate is quite low as the Complainant can not prove legal liability or debt against the accused. 

The problem of less conviction is because of lack of agreements and proofs of transactions. Many people faces problems for ‘land loans given to friends and relatives’ without any written indentures.

Cheque dishonour cases are considered as technical as there are stringent rules for limitation of sending notices, corrections of information in demand notice, filling of the cases, etc. Also, lack of evidences and loss / mutilations of original documents are the common issue which lengthens the case.

Many cases result in acquittal of accused because of the complaint is not represented by competent Advocate. Most of the complainant chose Advocate with ‘less fees’ over the ‘experienced legal expert’ which result in losing the money and reputation at the end of the case.