Cheque Bounce Crime and Legal Remedy in Nepal

Cheque bounce crime occurs in situations in which the receiver will not be able to exchange the issued cheque due to various reasons such as overwriting, mismatch of the signature, insufficient fund etc.

Nepalese Laws that address the  cheque bounce crime are:

• Banking Offence and Punishment Act, 2064
• Negotiable Instrument Act, 2034

Victim of a cheque bounce can seek legal remedy according to either law mentioned above.

Banking Offences and Punishment Act limits cheque bounce as the drawing of the cheque that constitutes its bounce due to insufficient funds.

• Cheque bounce is considered a Government Case, initiated by the government.
• FIR in the Police Office.
• Time Limitation for filing FIR is one (1) year from the last date of the cheque bounced by a bank or financial institution.

Court Process for Cheque Bounce  Legal Remedy in Nepal

In this court process, the victim can claim:

1. Imprisonment for up to 3 months of defendant
2. Fine up to 3 thousand
3. Or Both

• Dishonor of the cheque or cheque bounce is considered as an individual party case- initiated by aggrieved individual (Victim).
• The victim filed a petition in district court.
• Victim can file a case within five (5) years from the last date bank or financial institution bounced the cheque.

Court Process for Cheque Bounce Legal Remedy in Nepal

In this court process, the aggrieved party (victim) can claim:

1. Amount mentioned in the cheque
2. Interest of the amount in the cheque
3. Compensation/ fine from the defendant.

Thus, victims are privileged to choose either of the alternative legal proceedings for Cheque Bounce Crime and its Legal Remedy in Nepal

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