New Delhi. cheque is one of the safest ways to withdraw money. You must have gone to the bank many times with a cheque and deposited the money in your bank account. Be it school, college or property transaction, cheque is given priority. But what to do if the cheque bounces?
cheque bouncing is considered a crime. If the cheque bounces, there is a provision for punishment for it. Not only punishment but also fine has to be paid.
If a cheque bounces, the person who has given the cheque is considered guilty. That is, if someone else has given you a check and it has bounced, then that person will be guilty.
If the cheque bounces, a legal notice will be sent to that person. The person will have to answer this within 15 days. If he does not do so, a case can be registered against him under the Negotiable Instruments Act 1881.
A case of cheque bounce can also be registered under section 148 of this Act. This is a punishable offence. In this, the culprit can get jail up to 2 years.
Not only this, if the cheque bounces, a penalty of up to Rs 800 can be imposed. Apart from penalty, penalty is also imposed for bounced cheque. This can be double the amount written on the cheque.
However, this happens only in case the cheque is dishonored by the bank. The customer also has some rights when the check bounces.
If the punishment for cheque bounce is less than 7 years, then it is a bailable offence. In this, there is no jail until the final decision is taken. If someone is punished in this case, then he can apply before the trial court under Code of Criminal Procedure 389(3).
