In today’s era, online transactions may have become popular, but still most of the people prefer to make payment through cheque, because transacting through check is considered safe. But payment through cheque should be done very thoughtfully, that is, one needs to be very careful while filling the cheque, if there is even a slight mistake, the cheque may bounce, after which a fine may have to be paid. In some special circumstances, if a cheque bounces, a case can be filed and one may even have to go to jail. Let us know in detail in this article the reasons due to which a cheque bounces .
What are the Reasons for Check Bounce?
There are many reasons for bounced cheque such as – no or less balance in the account, change of signature, mistake in writing the word, mistake in the account number, overwriting, exceeding the overdraft limit, expiry of the cheque. cheque gets bounced due to reasons like cheque drawer’s account being closed, suspicion of fake cheque, absence of company’s seal on the cheque, etc.
What Happens When a Cheque Bounces?
If a cheque bounces, the bank charges a fine from the customer, which can vary depending on the reason, this fine can range from Rs 150 to Rs 750 or Rs 800. In India, cheque bounce is considered a crime. According to the Cheque Bounced Negotiable Instruments Act, 1881, the person can be prosecuted, and can be jailed for up to 2 years or fined twice the amount of the cheque, or both. However, this happens only when the check giver does not have sufficient balance in his bank account and the bank dishonors the cheque.
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When does the Matter of Litigation Arise?
It is not at all the case that as soon as a check is dishonoured, the payer is prosecuted. When a cheque bounces, the bank first gives a receipt to the creditor, in which the reason for the cheque bounce is explained. After this the creditor has to send a notice to the debtor within 30 days. If the debtor responds to the notice within 15 days, the creditor can file a complaint in the magistrate’s court within one month from the date of lapse of 15 days. If the amount is not paid even after this, a case can be registered against the debtor. According to Section 138 of the Negotiable Instruments Act 1881, bouncing of a cheque is a punishable offense and there is a provision of imprisonment of up to two years or fine or both.
How Many Days does a Cheque Bounce Case Last?
There is no time limit set for how many days the cheque bounce case will last, because in our country India, many types of cases are already pending in the courts, hence, about how many days the cheque bounce case will last. Nothing can be said.