Rajkumar Santoshi Cheque Bounce Case: Filmmaker Rajkumar Santoshi, famous for films like Ghayal, Damini, Lajja, Khaki, The Legends of Bhagat Singh, has been sentenced to two years in jail by the Jamnagar Court of Gujarat. Apart from this, he may also have to pay a fine of Rs 2 crore. The court has imposed this punishment on Santoshi in a Cheque bounce case.
What is the matter?
Ashok Lal, a prominent industrialist and shipping magnate from Jamnagar, has claimed that he had invested Rs 1 crore in Rajkumar Santoshi’s film, in return for which Santoshi had given 10 Cheque of Rs 10 lakh each. All these Cheque were later bounced. Ashok alleged that he tried to talk to the filmmaker about this, but could not reach him. After this he filed a case under the Negotiable Instruments Act.
How can Cheque bounce?
- No or low balance in account
- Signature mismatch
- Spelling mistake
- Mistake in account number
- Over writing
- Cheque expiration
- Closure of Cheque issuer’s account
- Suspicion of forged Cheque
- Absence of company seal on Cheque
How much is the penalty for bounced cheque?
Banks charge a penalty if a Cheque bounces. The fine has to be paid by the person who has issued the cheque. This fine may vary depending on the reasons. Generally, fine ranges from Rs 150 to Rs 750 or 800.
Can be jailed for up to 2 years
According to the Cheque Bounced Negotiable Instruments Act, 1881, a person can be prosecuted in case of Cheque bounce. He can be jailed up to 2 years or fined double the amount of the cheque, or both. However, this happens only when the Cheque giver does not have sufficient balance in his account and the bank dishonors the cheque.
What happens after a Cheque bounces?
Otherwise, as soon as the Cheque is dishonored, a case is filed against the payer. When a Cheque bounces, the bank first gives a receipt to the creditor, in which the reason for the Cheque bounce is explained. After this the creditor has to send a notice to the debtor within 30 days. If no response is received from the debtor within 15 days of the notice, the creditor can file a complaint in the magistrate’s court within one month from the date of lapse of 15 days of the notice.
If even after this the amount is not paid to you, a case can be filed against the debtor. According to Section 138 of the Negotiable Instrument Act 1881, bouncing of a Cheque is a punishable offense and there is a provision of imprisonment of up to two years or fine or both.
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