Dear Reader,
There are legal remedies available in case of cheque bounce when a person has defaulted on a loan and has issued a cheque which later gets dishonored. A cheque gets dishonored both in criminal and civil terms under the Negotiable Instruments Act, of 1881 for the reason of insufficient funds or whatever may be the reason. The person who issued the dishonored cheque may be put behind bars for two years or fined with or without both punishments.
However, in this scenario, if the borrower has run away, as per your word, the complaint is legal. The complainant can recover his loan amount by filing a case. In the case of M. S. Narayana Menon v. State of Kerala (2006), it was held by the Supreme Court that the payee has a right to take legal action against the dishonor of a cheque. In case the lender fails to recover, the lender can apply for an asset recovery process through the court, and once an individual is traced, a warrant or attachment of property proceeding can be initiated against him.
Further, if the borrower earns a salary and has income, then by way of an enactment called the Attachment of Salary (Sec. 60 of CPC), the lender may attach the salary in the event of default in repayment. This may also allow recovery over time in case the borrower is still capable of paying.
Hope this helps, if you have any questions, reach out to me at sankalpt44@gmail.com