The provisions relating to a Summary Criminal Case, provided in the Code of Criminal Procedure, 1973, are applicable to the proceeding under section 138. To add to this, in case an action is not taken against the payee by the receiver within the prescribed time, it can also lead to lack of remedy for the receiver of the cheque as a case for cheque bounce is time-bound. When the receiver of a cheque (which bounced) files the initial complaint in the police station against the issuer, the case is forwarded to the public prosecution. A cheque may bounce due to: a. When a cheque is returned by the bank unpaid, it is said to be dishonoured or bounced. These include white papers, government data, original reporting, and interviews with industry experts. Below-mentioned is a few ways through which a cheque bounce can affect you:As stated above, cheque bounce can attract possible criminal charges. Nicely written for any layman to understand.Tells all the legalities about the subject. Investopedia requires writers to use primary sources to support their work.
If this system connects the check you’ve just presented for payment to a history of unpaid checks, the merchant will decline your check and ask you for a different form of payment. Good work.Get the legal help & representation from over 10000 lawyers across 700 cities in IndiaPost your question for free and get response from experienced lawyers within 48 hoursContact and get legal assistance from our lawyer network for your specific matterConnect with top Cheque Bounce lawyers Legally, the person who has issued the cheque is called as 'drawer' and the person in whose favour the cheque is issued is called as 'drawee'. Non-sufficient funds (NSF) in the issuer’s account is one of the primary reasons for a bounced cheque. How do I file a case against a bounced Cheque? Bank fees are nominal fees for a variety of account set-up and maintenance, and minor transactional services for retail and business customers. The following are some of the reasons why a cheque is generally bounced :Cheque was presented after lapse of three months, i.e. In many cases, the payee also assesses a charge. What are the possible reasons due to which a bank can dishonour a cheque? Insufficient funds b. Non-sufficient funds is a banking term indicating that an account does not have enough money to cover a presented instrument or has a negative balance. A bounced check is slang for a check that cannot be processed because the account holder has A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee. A bounced check may result in fees, restrictions on writing additional checks, and negative impacts to your credit score. To avoid bouncing checks, some consumers use
An exception item is a banking term used to describe a transaction that is unable to be processed. Bank fees are just one part of bouncing a check. A cheque bounce can lead to numerous consequences for the payee as well as the receiver, such as bank penalty, negative influence on the CIBIL score, civil or criminal action against the issuer, etc. It is a written commitment to pay money by the drawer to the drawee. Thus, it is important to address a cheque bounce case as soon as possible in order to avoid all the consequences involved.very good article. for your specific issue Consumers can also fund a savings account and link it to their checking account to cover overdrafts. A cheque bounce can occur due to various reasons such as inadequate balance, when the validity of the cheque has expired, in case of a torn cheque, overwriting in the cheque.