1. That when you visited my client`s residence No.__________ in New Delhi during the month of ___ related to ___________Bank dated___________ and____________, for two amounts of Rs. ___________and Rs.____________ and Rs. __ i.e. the total amount of Rs.__________ in favour of my client instead of the repayment of the friendly loan that my client granted you against the amount of interest-free Rs._________. Recurrences can have serious consequences. The offender may be beaten with high fees for bounced cheques or even jail time. The bank can pay the checkbook or even close your account. Although the Reserve Bank of India states that such measures can only be taken if cheques worth 1 crore rupees or more have bounced more than four times.
One. The rejection or dishonour of a cheque is considered a criminal offence punishable by fines and/or imprisonment under Article 138 of Act N.I. A payee may send a cheque bounce notification to the drawer in accordance with section 138. If the cheque bounces due to a crash, an incompatible signature, numbers and words of the incompatible cheque amount, or a damaged cheque, the payee can ask the payer to deposit another cheque that corrects the error. If the subscriber does not agree to present another cheque, the beneficiary may bring a civil action against the subscriber to pay the amount of the cheque due to him and not for the bounce of the cheque. The fees for stopping paying on a cheque vary from bank to bank. Cheque carry-forwarding is an offence under section 138 of the Negotiable Instruments Act, 1881 (“Act”), which may be punishable by a fine of up to twice the cheque or imprisonment for up to two years, or both. If the recipient submits a check to the bank for payment and the check is returned unpaid by the bank with a memo on insufficient funds, the check would have bounced. A cheque bounce is one of the common financial crimes that can cause legal problems for the issuer and hurt their creditworthiness.
In India, the number of ongoing prosecutions related to cheque violations is enormous. A check is rejected if the issuer issues an erroneous check – for technical reasons such as non-compliance of the signature or overwriting, or even if there is not enough money in the account because it is not processed by the bank. The cheque will then be returned unpaid or cashed. Bank penalty: The bank imposes a penalty in the form of NSF (insufficient fees) in case of a check that withdraws due to insufficient funds in the account, non-matching of signatures or any other technical problem. The penalty imposed depends on the type of bank account. If the rejected check is intended to be refunded, the bank will charge a penalty fee plus a late payment fee in case of late payment. Court fees vary depending on the case and the amounts of the cheques. It is advisable to keep an eye on the available balance and keep extra money in your account as a buffer.
If you find that there is not enough money in your account, you can notify the beneficiary in writing and stop the payment/cancellation at your bank or deposit money into your account before the check date. MakaaniQ tells you more about the dishonor of checks and the judicial process in such cases: the offence of cheque bounce under article 138 of the law provides for a criminal penalty for the reason of the bounce of the check due to an insufficient amount, while the civil action for recovery does not punish the drawer and only provides for the recovery of the amount of the bounce check. The cheque must be issued to repay debts or liabilities, not for a gift or gift. The check must be sent to the bank during the validity period of the check, i.e. 3 months from the date specified therein. The reason for rejecting the cheque must be insufficient funds in the issuer`s bank account. The legal notice of non-delivery of check must be sent to the issuer so that it can make the payment before submitting a check bounce procedure against it. In addition, the complainant (beneficiary) must pay a standard amount of court fees, which depends on the amount of the disgraced cheque. Court fees vary from case to case and depend on different cheque amounts. One. No, only one complaint can be filed for three uncashed cheques. For example, if there are six uncashed cheques, 2 complaints must be filed.
Yes, there may be civil and criminal proceedings against the issuer in case of cheque withdrawal.