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Alternative Dispute Resolution Lawyer ( ADR )

The payee (the person for whom the cheque is issued) deposits the cheque issued in his name in his bank. Usually, there is a 90-days timeline from the issuance date to deposit cheque.
If the bank cannot give clearance to the cheque which is presented within prescribed time and payee does not receive the amount due as per the cheque, it is a bounced or dishonored cheque.
There can be various reasons including mismatch in details filled on cheque, mismatch in signature or insufficient balance in the account of issuer.
This could be mala-fide (deliberate) or a bona-fide (inadvertent) mistake. In cases of mala-fide intention of issuer, the payee has every right to resort to the legal action against the culprit.
However, the reason of insufficient amount in the drawer account is a punishable offence as per Indian laws.

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