If the cheque given to you bounces, you can ask the person for another cheque within 30 days, ask the drawer to clear the dues, or take legal action or take it in court with supporting documentation and papers.
Before we get into details, lets get some simple nomenclature right.
"Cheque is a negotiable instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument"
Author of the cheque is called drawer and the person in whose favor the cheque is drawn is called payee and the bank on which the cheque is drawn is called drawee.
Cheque bounce is a legal offence under Negotiable instruments act 1881, If the drawer is individual then the proceeding will done under thesection 138 of negotiable instruments act If the drawer is a company then the managing director of the company will have to face the proceedings under the section 141 of negotiable instruments.
Below is the set of steps you need to do in case of cheque bounces:
If the drawer does not make the payment then one can file the complaint in the court.
For filing complaint the drawee has to submit various documents to the court:
*Vakalatnama in favour of the lawyer.
After submission of the above statement the case is filed and proceedings takes place.
If found guilty, the defaulter is liable to be punished with monetary penalty twice the amount of the cheque or imprisonment for a term which may be extended to two years or both