I recently signed a two-year employment agreement, but it’s on company letterhead, not stamped paper. They also took an undated cheque for ₹80,000 from me. If they deposit the cheque and it bounces due to insufficient funds, could they file a criminal case against me?
Best Answer
Under Indian law, a bounced cheque can lead to criminal charges under Section 138 of the Negotiable Instruments Act. However, this only applies if the cheque was issued for a legally valid debt. Since your employment agreement is not on stamped paper, its validity is questionable. Additionally, the lack of a date on the cheque may make it difficult to prove the exact time of issuance and intent to defraud.
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