Get ready to be treated like a criminal if the cheque that you issue gets bounced

Submitted by asandil on Wed, 05/21/2014 - 18:58

Two things will take place in case you issue a cheque to someone and it gets bounced. You will need to pay a penalty. The person whom you have issued the cheque, too, will be punished by the bank where she/he presents the cheque for clearance. What's more, if your cheque towards repayment of a loan bounces, then, in addition to the penalty for the bounced cheque, (charged by both banks), you will also pay late payment charges.

The offence of cheque bouncing and legal provisions associated with it

Submitted by asandil on Thu, 04/24/2014 - 19:08

Bouncing of a cheque invites criminal prosecution under section 138 of Negotiable Instruments Act. The Act states that when a person issues a cheque to another person to be encashed. The concerned cheque is issued towards a ‘debt’ payment or liability which is returned unpaid for insufficient of funds, the person who is issuing the cheque without having the required amount is treated as offender as per the Indian Govt. Section 138 presupposes three conditions for prosecution of an offence they are:

All about the term ‘Cheque Bounce’ and the legal provisions associated with it

Submitted by asandil on Sat, 04/19/2014 - 19:16

A cheque is a document or instrument that orders a particular payment of money from a bank account. The person who is writing the cheque, known as drawer, he writes the various details on the cheque including the date, monetary amount, name of payee, signs on cheque and ordering their bank to pay the stated amount to that particular organization or that person encash that.