In India, the punishment for cheque dishonour is primarily governed by Section 138 of the Negotiable Instruments Act, 1881. To hold someone criminally liable under Section 138, the following conditions must be met: Dishonor of Cheque: The cheque must be dishonoured due to reasons such as insufficient funds or exceeding the amount covered by the … Read more
How to Protect Yourself from Cheque Dishonour To avoid issues related to cheque dishonour in India, it’s essential to take preventive measures and understand the legal and procedural aspects involved. Ensure Sufficient Funds: Always ensure that your bank account has enough funds to cover the amount of the cheque you issue. Verify Cheque Details: Verify … Read more
There is no restriction regarding the number of times a cheque can be presented and that every subsequent representation and dishonor gives rise to fresh cause of action for filing complaint. The holder of cheque can approach Cheque Bounce Advisor (CBA) Team even after a single incident of cheque bounce and seek expert services for … Read more
Yes, cheque bounce is a criminal offence for deliberate wilful reasons as stated above and as per section 138 of Negotiable Instruments Act, the drawer/signatory of the dishonoured cheque can be punished with an imprisonment for a term which may extend to two years, or with the fine which may extend to double of the … Read more
PROCEDURE TO FILE A CRIMINAL CASE AGAINST THE DRAWER OF THE CHEQUE FIRSTLY:- the holder of the cheque/payee has to send a demand notice within 30 days of the receipt of such dishonour information to the drawer of the cheque, either personally or through lawyer, asking to make the payment of the cheque amount within … Read more