Check Bounce: If you have given a check as a gift to someone and it bounces, can a case be filed against you? This question often comes to people’s mind. Often people think that a case is registered directly as soon as a check bounces, but the law does not say so. Because if the check is given only as a gift or help, then the situation changes in this case.

Section 138 of the Negotiable Instruments Act applies only when the check is given to repay any liability or loan. But the important thing is that in such cases the court may have to prove that the check was not given for any loan.

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Can a case be filed if a gift check bounces?

If we talk about it, the direct answer would be no. If you have given a check to someone for a wedding, festival, charity or any personal help and it bounces, then generally a criminal case is not made out under Section 138.

because the law says

The check should be for a legal loan.
Gifts are not considered a legal obligation.
That is why not every gift check becomes a bounce case.

Know when such cases have come up

In the year 2013, the case of Vijay vs. Laxman came up in the Supreme Court. In this case, complainant Vijay claimed that he had given a personal loan of Rs 1 lakh 15 thousand to Laxman (accused). Laxman gave a check to repay this loan, which when deposited in the bank bounced due to lack of money. Laxman said that he had not taken any loan. He had given this check to Vijay’s father only as security, because he used to supply milk there.

What was CART’s decision?

The Supreme Court found that Vijay could not prove when and how he had given the loan. On which the court said that having the check in hand does not prove that the loan is legally valid, after which the court acquitted Laxman and dismissed Vijay’s complaint.

A similar case came in Andhra Pradesh High Court

Another such case came in Andhra Pradesh High Court, the case of B. Krishna Reddy vs. M. Chandrasekhar. In this case also the complainant could not prove the loan. After which the court clearly said that if the check is given as a gift or any personal help then it cannot be considered a check bounce crime.

Under Section 139, the court initially assumes that the check was given for some liability. In such a situation, you may have to prove such as…

• The check was given as a gift.
• There was no loan.
• And also the other person’s claim was wrong.

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How to protect yourself?

• Before giving the cheque, write the reason on it like wedding gift or festival gift.
• Keep a gift letter. If the size is small then definitely give a written note.
• Keep its records safely like messages, chats or letters can become evidence.