Cases involving returned checks are governed by Section 138 of the Negotiable Instruments Act of 1881. A check bounces when a bank refuses to acknowledge a payment. When the bank returns a check unpaid, it is referred to as having been dishonored or having bounced. A few of the causes include incorrect signatures, mismatched numbers on the check (both in words and figures), and overwriting. These are minor issues that can be settled outside of the legal system. It's a major deal when a check bounces due to insufficient funds in the drawer's account. In the event that a check you received bounces, you have two options. 15 days have passed since the demand notification was sent to the individual.

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