The legal protection provided to the creditor or drawee of a dishonored or bounced cheque under Section 138 of the Negotiable Instruments Act and sections 420 and 406 of the Indian Penal Code, has made cheque payments one of the most secure modes of payment and transactions in India. In the event of a cheque bounce, the creditor can not only serve a legal cheque bounce notice to the debtor, but also challenge him in a court of law for repeated defaults. Under all circumstances, the creditor is legally entitled to recover the entire amount due with the debtor, or seek his punishment in case of non-payment of the due amount.