Cheque Bounce: Cheque bouncing will be very costly, High Court told when one will have to go to jail
Cheque Bounce Rules: Nowadays most people use cheques. Such cheque bounce cases are also common. In a cheque bounce case, there is a provision of imprisonment for the person who gives the cheque. Now the High Court has given a historic decision on this, which is being discussed. If you also transact by cheque (Cheque Using Tips) then keep this decision in mind.
Cheque Bounse Rules : There are many reasons for a cheque bouncing, such as mismatch of signature, overwriting, insufficient funds in the account, etc. The person who gives the cheque bounce (Cheque Bounse Punishment) faces many problems.
He may have to pay a fine and the bank's penalty will be separate. Now the High Court has given a historic decision (HC decision on Cheque Bounce) in the case of cheque bounce. In this, the court has decided when the person who issued the cheque can be sent to jail if the cheque bounces.
Avoid these mistakes while issuing a cheque:
Giving cheque bouncing tips is a safe way of payment for you, but it can bounce. It is very important to keep many things in mind while giving a cheque. But while signing the cheque, the signature on the cheque should be the same as the one in the bank account.
Being clever while signing can also be dangerous. Never give a cheque from a closed bank account. If you give a cheque whose account has already been closed, or make a stop payment after giving the cheque, it will cost you heavily.
It is necessary to find out how much money is in the account-
Even if there is less money in the account than the amount written on the cheque, the cheque will bounce. This is the most dangerous for the cheque issuer. Cheque bounce is legally considered a crime. Now Allahabad High Court has given an important decision on cheque bounce,
In which the High Court said that lack of signature, lack of required amount, account being closed and non-payment are the reasons for cheque bounce.
The person who issued the cheque from his cheque book will be responsible for this. This is the reason why before giving the cheque, make sure whether there is actual amount in the account or not.
Cases are registered under this law-
If there is less money in the account than the amount written on the cheque, the cheque gets rejected or bounced. Whenever you give a cheque to someone, the simple solution is to ensure that the amount in the account is less than the amount available.
If the cheque bounces due to this reason, the person who issued the cheque will face legal punishment. The cheque bounce case is registered under section 138 of the Negotiable Instruments Act, 1881.
Punishment of so many years on check bounce-
If the court holds the person guilty for cheque bouncing when there is less balance in the account, then the punishment can be double the amount of the cheque or at least two years imprisonment.
Depending on the case, the court can impose a fine or both. Banks also levy a penalty on cheque bouncing because they waste manpower. This penalty amount is deducted from the account of the person who issued the cheque (Cheque Bounce par sja).