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Cheques are widely used by individuals and institutions for financial purposes. It serves as a legal
document for banks. However, it not followed, it may lead to raise several financial as well as legal issues
and complications. This research paper examines the legal and procedural aspects of cheque dishonour
in India, focusing on the steps involved in the disposal of dishonoured cheques. It explores the legal
framework under the Negotiable Instruments Act, 1881, particularly Section 138, which addresses the
consequences of cheque dishonour due to insufficient funds or other reasons. The paper details the
procedural requirements for issuing a notice of dishonour, the timeline for initiating legal action, and the
role of courts in adjudicating such cases. Additionally, it highlights the challenges faced by both the
payee and the drawer during the process, including potential delays and legal complexities. By providing
a comprehensive overview of the cheque dishonour process, this paper aims to offer insights for legal
practitioners, banking professionals, and individuals dealing with cheque-related disputes.
Keywords:
Cite Article:
"PROCEDURE FOR DISPOSAL OF CHEQUE DISHONOUR CASES", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 8, page no.b327-b331, August-2025, Available :http://www.ijrti.org/papers/IJRTI2508144.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator