Neeresh draws a cheque of ₹ 50,000 on his own account payable to Gukesh, but he only has ₹ 20,000 in his account. Gukesh presents the same to the bank with in the time allowed. Cheque got bounced due to insufficiency of

Section 138 of the Negotiable Instruments Act, 1881 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both. Provided that nothing contained in this section shall apply unless- the cheque has been presented to the bank within a period of three months from the date on which it is drawn or within the period of its validity, whichever is earlier; the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice; in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Gukesh has a clear remedy under Section 138 of the Negotiable Instruments Act, 1881, provided he follows the below mentioned procedural steps: Present the cheque within 3 months. Send a demand notice within 30 days of dishonour. Wait 15 days for payment. File a complaint within 1 month after expiry of 15 days. If Neeresh fails to pay despite notice, Gukesh can proceed to file a criminal complaint, and also seek civil remedies like recovery of the cheque amount with interest.