Bounce Cheque

Bounce Cheque

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 Bounce Cheque

Where any cheque drawn by a person on an account  maintained  by  him  with a banker for payment of any amount of money  to  another  person  from  out of that account for the discharge, in  whole  or  in  part, of any debt or other liability, is returned by the bank  unpaid,  either  because of the amount of money standing to the credit of  that  account  is insufficient to honour the cheque or that it  exceeds  the  amount  arranged  to be paid from that account by an   agreement  made  with  that  bank,  such person shall be deemed to  have  committed  an  offence  and shall, without prejudice.to any other provision of  this  Act, be punished with imprisonment for a term which may extend to  two  years, or with fine which may extend to twice the amount of the cheque,  or with both.

Further if cheque is bounced than it also affects the CIBIL score of person.

Amendment

The Negotiable Instruments (Amendment) Bill, aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant.

The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured.

The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summon case. It is applicable even if he pleads not guilty to the charge made in the complaint.

The drawer of the cheque has to pay interim compensation within 60 days from the date of the order. If the court is satisfied, it can grant an extension of a further 30 days but not beyond that.

In case the drawer of the cheque is acquitted in the case, the complainant has to repay the drawer the interim compensation with interest. The repayment has to be made within 60 days from the date of the court order.

 

 


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