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.Â
Dishonored Cheque: In bank language, 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 bounce
There can be many reasons for a cheque to bounce. This includes no balance in the account or less balance, mismatch in signature, mistake in writing the words, mistake in account number, overwriting, expiry of the cheque, account of the person who issued the cheque being closed, suspicion of fake cheque, no seal of the company on the cheque etc.
Can the mistake be corrected?
Yes, if your cheque has bounced, you are given full opportunity to correct this mistake. It does not happen that your cheque bounced and a case is filed against you. If your cheque has bounced, first the bank informs you about it. After this, you have 3 months in which you give the second cheque to the creditor. If your second cheque also bounces, then the creditor can take legal action against you.
Banks charge penalty on cheque bounce
Banks charge penalty on cheque bounce. The penalty has to be paid by the person who has issued the cheque. This penalty can vary according to the reasons. For this, every bank has fixed a different amount.
When does the case arise
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, in which the reason for the cheque bouncing is mentioned. 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 a 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.
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