When the cheque bounces, a check is given by the bank, which is called the Check Return Memo. This paper is in the name of Payee, who has issued the check. The reason for the check bounce is written on this paper.
The Supreme Court has issued instructions regarding cheque bounce. cheque bounce cases are increasing rapidly in the country and the Supreme Court has given some instructions to settle these cases. In this regard, the Supreme Court has asked the Central Government to reform the law which is related to check bounce.
The Supreme Court directs that all the transactions related to a person in a year, which are related to check bounce, should be disposed of simultaneously so that the hearing of the cases can be expedited. Now there is also a directive that the witness does not need to be called in the court in the check bounce case and the evidence can be filed as an affidavit. Around 35 lakh cases in the country are related to cheque bounce, which the Supreme Court has asked the Center to create additional courts for disposal. The Supreme Court has asked all the High Court to direct the lower courts to settle the check bounce cases.
What is a cheque bounce
For example, suppose someone has given you a cheque for payment. You put that check in the bank. In such a situation, it is important that the amount of the check given, should be the same amount in the account of the person giving the check. If it does not, the check bounces. That is, the amount of check given is not in the bank account. In bank parlance it is called dishonored cheque.
What is a check return memo
When the cheque bounces, a check is given by the bank, which is called the Check Return Memo. This paper is in the name of Payee, who has issued the check. The reason for the check bounce is written on this paper. After this, there is a time of 3 months in front of the check holder or payee, in which he has to deposit the check for the second time. If the check bounces again, Payee has the right to take legal action against the issuer of the check.
Litigation in civil court
Under this, notice is sent to the issuer of the check and is asked to pay the money within 15 days. If you get the money in 15 days, then the matter is resolved. If it does not, then this matter can be taken into legal process. For this, a case can be filed in the civil court under Section 138 of Negotiable Instruments Act 1881 against the person giving the check. In this, there is a provision of 2 years jail and fine for the accused. The amount of the fine may be twice the amount of the check.
Make a case in IPC too
In case of check bounce, it can also be tried under Section 420 of IPC. That is, in addition to civil, the case of check bounce can also be done in the Criminal Court. Under Section 420 of the IPC, it has to be proved that issuing checks and not keeping money in the account was done with the intention of dishonesty. If this case is proved, the accused can be punished and fined for 7 years. However, in the civil case, there is a facility that the court can either get the victim party some money or instruct it in the beginning.
