A TO Z DISHONOUR OF CHEQUES BY DR. PRAMOD KUMAR SINGH AND TANYA SINGH

A to Z overview of the law relating to dishonour of cheques under Indian law, especially focusing on Section 138 to 147 of the Negotiable Instruments Act, 1881:

—

A to Z of Dishonour of Cheques (NI Act)

A – Accused The person who issued the cheque and is alleged to have committed the offence under Section 138.

B – Bouncing of Cheque Common term used for dishonour of cheque due to reasons like insufficient funds, account closed, etc.

C – Cheque A negotiable instrument instructing a bank to pay a certain amount of money from the drawer’s account.

D – Drawer The person who writes/signs and issues the cheque.

E – Endorsement Transfer of a cheque to another person by signing on the back; relevant in cases involving third parties.

F – Funds Insufficient