Civil and Criminal Remedies in Cheque Bounces
Legal

Civil and Criminal Remedies in Cheque Bounces

For a lot of day-to- day transactions, a cheque may be used by a person for the payment to the other party. A Cheque is a negotiable instrument. It is a document that orders a bank to pay a specific amount of money from the holder’s account to the person whose name has been mentioned on the cheque. The person who is writing the cheque is known as the drawer. A cheque can be viewed as a type of bill of exchange; it came into use mainly to avoid the need of carrying large amounts of money. A cheque can be issued by and in favor of both natural persons as well as legal entities. 

Continue Reading about 6 years ago
Law relating to Cheque Bounce in India
Legal

Law relating to Cheque Bounce in India

Dishonour of cheque most commonly said as cheque bounce occurs when a cheque that is presented in the bank is returned unpaid. It could happen because of lacking assets or insufficiency of funds in the bank account of the individual who has issued the check or has put his signature on the cheque that is not coordinating with the original signature of that person. One can proceed against the individual who has issued such a cheque under different provisions of law. The most essential and helpful arrangement to consider the situation of cheque bounce is Section 138 of The Negotiable Instruments Act.

Continue Reading about 6 years ago