Can You Be Arrested For A Bounced Cheque

Cheques Are Used To Make Safe, Secure, And Convenient Payments. It Is A Safe Alternative Because The Transaction Does Not Involve Any Hard Cash, Lowering The Danger Of Loss Or Theft. The Cheque Method Of Fund Payment, Which Includes Three Parties, Allows For The Timely Movement Of Money Through A Written Paper Source.

What Is Cheque Bounce

When A Cheque Is Submitted To The Bank And The Indicated Amount Is Successfully Transferred, The Cheque Is Honored. However, If The Bank Is Unable To Pay The Indicated Amount Due To Inadequate Cash Or Signature Irregularities, The Cheque Is Considered Dishonored. Bounced Cheques Are A Criminal Offense Under Section 138 Of The Negotiable Instruments Act Of 1881. It Is Punishable By A Fine Of Up To Twice The Amount Of The Cheque, Imprisonment For No More Than Two Years, Or Both.

Reasons For Cheque Bounce

Cheques Presented Beyond Their Expiration Date Will Be Bounced By The Bank. The Cheque Must Be Presented For Payment Within Three Months After Issuance Of It.
Insufficient Funds In The Payer's Account Might Also Cause A Cheque To Bounce. If There Are Insufficient Funds To Pay The Cheque Amount, The Bank Will Reject The Cheque And Return It To The Payee With A Memo Stating Such.
Another Reason Can Be A Mismatch In The Amount Of Words And Digits Written On The Cheque. The Mismatch Raises The Confusion.
The Circumstance Might Arise Regarding The Discrepancies Between The Payer's Signature On The Cheque And The Bank Records. This Can Become The Reason For Cheque Bounce.
The Bank Bounced Damaged Or Unreadable Cheques.
If You Have Overwritten The Cheque, Then Also There Are Chances That Your Cheque Will Be Bounced.

The Law Relating To Cheque Bounce

Section 138 Of The Ni Act Deals With Cheque Bounce Cases. It States That If The Cheque Is Bounced Due To Insufficient Funds Or Any Other Reason, Then It Will Constitute An Offense. There Are Certain Legal Requirements For Making It An Offense. The Cheque Should Be Given To Discharge Any Legal Liability; It Must Be Presented To The Bank Within 3 Months And It Must Be Dishonored On Presentation; A Demand To Pay Must Have Been Made And The Drawer Must Fail To Pay After The Demand, The Notice Has Been Given Within 30 Days From The Date Of Receipt Of Information From The Bank About The Dishonored Cheque And The Person Still Does Not Make The Payment Within 15 Days Of Receipt Of The Notice The Complaint Will Be Filled In Court.

If All These Requirements Are Fulfilled, Then The Person Can Be Held Liable To Imprisonment Up To Two Years Or With A Fine Of Twice The Amount Of The Cheque Or With Both.

Can You Be Arrested For A Bounced Cheque

Cheque Bounce Is A Bailable Offense. If A Cheque Issued By You Bounces Due To Inadequate Funds, Then You May Be Arrested Because It Is A Criminal, You Can Obtain Bail If You Guarantee Your Attendance In Court When Required. If There Is More Than One Cheque Bounce Case, The Payee Might File Individual Cases Against Each Dishonored Cheque, Which Can Complicate Matters For The Defaulter, Which Is You. The Goal Of Jail Is To Ensure That Unscrupulous Persons Do Not Defraud Innocent People With Payments And Do Not Depart The Nation.

Remedies In Case Of Cheque Bounce

If The Cheque Bounces For Any Reason Other Than Insufficient Money, No Cheque Bounce Notice Will Be Given, And The Payee May Request Resubmission Of The Cheque. If The Cheque Is Returned For Insufficient Money, A Notice Can Be Given.
If The Cheque Bounces Owing To Overwriting, A Discrepancy In Signature, A Mismatch In The Figures And Words Of The Cheque Amount, Or A Damaged Cheque, The Payee May Request That The Drawer Produce Another Cheque To Correct The Error. The Payee Might Take Civil Action Against The Drawer To Pay The Cheque Amount Due To Him, Rather Than The Cheque Bounce If The Drawer Declines To Submit Another Cheque.
The Payee May Issue A Cheque Bounce Notice Within 30 Days Of Receiving An Intimation From The Bank And The Bounced Cheque, Saying That The Bank Is Unable To Complete The Cheque Payment Due To An Inadequate Amount. The Payee Must Give The Drawer 15 Days From Receipt Of The Cheque Bounce Notice To Settle The Cheque Amount. If The Drawer Fails To Pay Within 15 Days, The Payee May Take Legal Action Against Him Within 30 Days After The Expiration Date. There Is An Exception: If The Cheque Was Issued As A Donation, Gift, Or Any Other Obligation That Is Not Legally Enforceable, No Cheque Bounce Notice Will Be Given.

A Cheque Is One Of The Most Common Forms Of Payment In Business Operations. If A Cheque Is Dishonored, One Should Strive To Repay It During The Notice Period When The Complainant Makes A Claim, Or He May Face Criminal Charges.

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