Cheque Bounce & Debt Recovery Published & Fact-Checked 27 Aug 2026

What happens if cheque is returned with memo 'Account Closed' or 'Stop Payment'?

Supreme Court has settled that 'Account Closed', 'Stop Payment', and 'Signature Mismatches' all fall under Section 138 NI Act provided the cheque was issued against a legally enforceable liability.

← View All FAQs

NEED PERSONALIZED LEGAL HELP?

Facing this legal situation or need urgent counsel?

Connect with a verified advocate specializing in Cheque Bounce & Debt Recovery in your city within 15 minutes.

✓ 100% Confidential ✓ Zero Brokerage ✓ Verified Bar Council Advocates

Request Consultation WhatsApp Us

Explore Specialized Legal Practice Areas

Facing this legal situation or need urgent counsel?

Related Cheque Bounce & Debt Recovery Legal Questions

What is a Debt Settlement Agreement and how does it legally protect borrowers?

How to legally recover an unpaid commercial security deposit from a commercial landlord?

How to legally dispute and remove an erroneous default mark from your CIBIL credit report?

What are the legal liabilities of a Loan Guarantor if the primary borrower defaults?

Can a lender file both a Civil Recovery Suit and a Section 138 Criminal Case for the same bounced cheque?

What is Section 25 of the Payment and Settlement Systems Act (NACH / Auto-Debit Bounce)?

Explore Specialized Legal Practice Areas