Negotiable Instruments includes a Promissory note, bill of exchange or cheque payable either or at order to bearer or holder in due course. Cases of cheque bounce are common these days. In most of the transactions be it re-payment of loan or payment of fees for business purpose, payments are made by cheque.

These cheques bearing large amounts sometimes remain unpaid and are returned by the bank on which they are drawn for the reason of Insufficient Funds, For such cases punishment is provided under Negotiable Instruments Act, apart from Banker cheques promissory note were also issued for any loan transactions including personal loans.

The holder of the cheque or promissory note has to approach when the persons who gave cheque or promissory note fails pay the amounts mentioned or promised, in the court of law for punishment and recovery of the said amounts.