LEGAL ASPECTS OF CHEQUE BOUNCING IN INDIA: A Comprehensive Research Paper on the Analysis of Section 138 of the Negotiable Instruments Act,1881

Cheque dishonour- colloquially known as cheque bouncing- represents one of the most prolifically litigates categories of financial offences in the Indian legal system. Governed primarily bt section 138 of the Negotiable Instrument Act,1881. (NI Act), the legal framework surrounding dishonoured cheques has evolved considerably over more than four decades of judicial interpretation, legislative amendment and policy reform. This paper offer a thorough examination of the legal ,procedural and socio-economic dimension of cheque bouncing in India. The paper analyses the statutory framework established under section 138 to 147 of NI Act, the mandatory pre-complaint procedures, the burden of proof, the presumption available to the complainant, and the penalties prescribed. It traces significant legislative milestones, including the banking, Public financial Institutions and Negotiable Instrument Laws (Amendment) Act,2018. The paper conclude with a set of reform recommendation aimed at strengthening the credibility of cheque transaction and improving access to timely justice for both payees and drawers.