Dishonored Cheque: In today’s time, of course, most people resort to digital payment, but still there are many works for which a cheque is still needed. But while making payment by cheque, it should be filled very carefully because your small mistake can cause the cheque to bounce. In the language of banks, cheque bounce is called Dishonored Cheque. Cheque bounce may seem like a very minor thing to you, but according to section 138 of the Negotiable Instrument Act 1881, cheque bouncing is considered a punishable offence. There is a provision of punishment and fine or both for this.
Know the reasons for which a cheque can bouFnce
There can be many reasons for a cheque bouncing. These include no or less balance in the account, mismatch of signature, mistake in writing the word, mistake in account number, overwriting, expiry of the cheque, closure of the account of the person who issued the cheque, suspicion of a fake cheque, absence of company seal on the cheque etc.
Can the mistake be corrected?
Yes, if your Cheque bounces, you are given a full chance to correct the mistake. It does not happen that your Cheque bounces and you are sued. If your Cheque
bounces, the bank first informs you about it. After this, you have 3 months to give another Chequeto the creditor. If your second Cheque also bounces, the creditor can take legal action against you.
Banks charge penalty on Cheque bounce
Banks charge a penalty when a cheque bounces. The penalty has to be paid by the person who issued the cheque. This penalty can vary according to the reasons. Every bank has fixed a different amount for this.
When does a lawsuit arise
It is not so, as soon as the cheque is dishonoured, a case is filed against the payer. When the cheque bounces, the bank first gives a receipt to the creditor, which tells the reason for the cheque bouncing. After this, the creditor can send a notice to the debtor within 30 days. If there is no response from the debtor within 15 days of the notice, then the creditor can go to court. The creditor can file a complaint in the magistrate’s court within one month. Even after this, if he does not get the money from the debtor, he can file a case against him. If found guilty, a jail term of up to 2 years or a fine or both can be imposed.
