Negotiable Instruments Act, 2034

According to the Act, a cheque bounce is when a person deliberately transfers a cheque by drawing it to some who does not bear a deposit in the bank or bears an insufficient deposit. Following the commission of the such act, the amount mentioned in the cheque, as well as interest on it, shall be recovered from the drawer to the holder and he/she shall be punished with imprisonment of up to three months or a fine of up to three thousand rupees or both. This Act identifies cheque bounce as an individual party offense wherein the aggrieved must file a complaint in the concerned District Court within five years from the date of cause of action to file such complaint.