Cheque Bounce Due to Signature Mismatch 1. Legal Validity: - A cheque can be considered dishonored if the signature of the drawer (issuer) does not match the specimen signature available with the bank. - This is treated as a valid reason for dishonor under Section 138 of the Negotiable Instruments Act, 1881. 2. Consequences for the Drawer: - The payee (person to whom the cheque is issued) can initiate legal action under Section 138 if the cheque was issued for the discharge of a legally enforceable debt or liability. - A legal notice must be sent to the drawer within 30 days of receiving the cheque return memo from the bank. 3. Procedure for Filing a Case: - If payment is not made within 15 days of receiving the legal notice, the payee can file a complaint in the Magistrate's court within 30 days after the expiry of the notice period. 4. Possible Defenses for the Drawer: - The drawer may claim that the mismatch was accidental or provide evidence that the cheque was not issued for a legal liability. - The drawer can also attempt to resolve the matter amicably by making the payment before the complaint is filed. 5. Penalty and Punishment: - Conviction under Section 138 can result in imprisonment of up to two years or a fine that may extend to twice the cheque amount, or both. - The drawer may also face civil liabilities for recovery of the amount.

Mismatching of signature of cheque with specimen signature available with bank is also is an offence under negotiable Instruments act.