Cheque bounce case : Hello friends, in this digital age, the use of bank cheques is increasing a lot. If any person issues a cheque but there is not enough money in his account, then the cheque gets bounced, you should know this very well.
This situation is embarrassing as well as a cause of legal troubles. Cheque bounce happens due to 4 reasons, first insufficient amount, second wrong signature, third expired cheque or overwriting on the cheque. So let us know when the cheque will bounce, its official declaration has been given by the Supreme Court.
Will be 2 years imprisonment or fine
First of all, you should know the big news that in the law of India, check bouncing is considered a very serious crime. According to the law under section 138 of the Negotiable Instruments Act 1881, the person doing this can be punished with a maximum of 2 years imprisonment or fine. But this punishment is not given immediately, the entire legal process is completed and then the decision to give punishment is taken.
Know how much amount will be the fine
After the cheque bounces, first of all the concerned bank will deduct the penalty amount from its account. The penalty amount varies from bank to bank, however according to media reports, it is likely to be around ₹500 to ₹1000. Along with this, the person who receives the cheque is also informed by the bank that the cheque has been returned due to insufficient amount.
The law changed in 2019
Friends, in the year 2019, an important change was made in this law. According to the change made, it was decided to give interim compensation of 20% of the check amount to the victim during the first hearing itself. After this, this provision was amended by the Supreme Court and it was said that this amount will be given at the time of appeal and not beforehand.
This way you can avoid being jailed
You will not be sent to jail immediately after the check bounces. First of all, a notice has to be sent to the aggrieved party. If the amount is not paid within 15 days, legal action will be initiated against you.
After the legal process, the final verdict is pronounced and then the jail sentence is awarded. During this time period, there is a full possibility of the accused getting bail.
The important thing is that you must check the balance in your account before using the cheque. While signing the cheque, ensure that it matches the bank’s records, avoid any kind of overwriting and write all the information clearly.
