Chapter 19 Dishonour of cheque

An instrument is said to have been dishonoured by non-payment only

when the party primarily liable i.e. the acceptor of the bill. the maker of
the note, the drawee of a cheque make default in payment.
Rightful dishonour i.e. if the dishonour of cheque by drawee banker is
for any reason specified or for any other rightful reason where no remedy
available against banker but holder in due course has civil & criminal
remedies against drawer.
Wrongful dishonour i.e. dishonour of cheque by banker by negligence or
carelessness & action can be taken against banker.
Dishonour of cheque is an offence. Dishonour of cheque due to insufficient
funds or non arrangement of adequate funds to be paid is a criminal
offence u/s 138 of the Act. Such offence is punishable with imprisonment
up to 2 years or fine up to twice the amount of cheque or with both.
In case of cheques unless proved to contrary it is presumed that
The holder of cheque received the cheque in discharge of whole or part
of debt
If a person owing money issues a cheque without adequate money in
his account, to discharge a liability that his intention was to defraud
his creditor