A bounced cheque can be both criminal and civil in nature, depending on the circumstances surrounding the cheque's issuance and bouncing. In India, a bounced cheque is a criminal offense under Section 138 of the Negotiable Instruments Act, 1881, if it was issued for discharge of a debt or liability and subsequently bounced due to insufficient funds in the account or any other reason. The person who issued the cheque (the drawer) can be prosecuted and sentenced to imprisonment or fined, or both. On the other hand, a bounced cheque can also be a civil matter if the cheque was not issued for discharge of a debt or liability, but as an advance payment, gift or donation, or for any other purpose that does not involve a legal obligation to pay. In such cases, the aggrieved party can file a civil suit for recovery of the amount owed, along with interest and damages. It is important to note that the civil and criminal proceedings for a bounced cheque are independent of each other, and the aggrieved party can pursue both simultaneously. However, the criminal proceedings under Section 138 of the Negotiable Instruments Act can be initiated only after the issuance of a legal notice demanding payment and giving the drawer an opportunity to make good on the cheque. If the drawer fails to do so within 15 days of receiving the notice, the aggrieved party can file a criminal complaint with the appropriate court.