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.

Cheque bounce new rules: If you pay someone by check, then take extra precautions while writing the amount. This is because your difficulties may increase if the check bounces.

Taking seriously the cases related to check bounce, the government has made major changes in the Negotiable Instruments Act, 1881, which have come into force from 1 April 2025. The purpose of these changes is to prevent fraud, make payment system transparent and to resolve complaints soon. Let us know in detail about these changes and its impact on people.

Now there will be severe punishment already

Under the new law, now the person guilty will be punished more strict than before if the check bounced. If the check bounced under Section 138 of the NI Act, now the convict can be fined up to two years from the amount of jail and the amount of double amount.

Apart from this, the hearing of check bounces running in the court will also be faster than before. The government has also implemented a digital tracking system to dispose of such cases rapidly. After hearing the cases in the fast-track court, decisions are also being taken soon.

Extended complaint deadline

When the first check bounced, the complainant had to lodge a complaint within a month. Now it has been extended to three months, that is, the complainant will get more time to present his case. Along with this, now complaints related to check bounce can be made online and digital evidence will also be recognized. This will make it easier to file a complaint.

A similar process has been implemented for all banks. That is, the case of check bounce, irrespective of the bank, action will be taken in the same way. If a person’s check is bounced three times in a row, then the bank can also freeze that account.

How to save yourself?

• Keep so balance in your account that there is no check bounce.
• Fill the date and recipient’s name correctly on the check.
• Use good quality ink (black or blue).
• Keep checking the bank statement from time to time.

Check bounce crime

It is a crime to bounce check under Section 138 of the Negotiable Instruments Act, 1881. Under this, imprisonment of up to two years, fine of check amount can be paid up to fine, court fees and legal expenditure. Apart from this, the bank can also impose a fine of 100 to 750 rupees.

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