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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