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Cheque Dishonour | Cheque bounce
- 1. CHEQUE BOUNCE BY AYUSHI GUPTA FOUNDING PARTNER – A & T LEGAL LL.B. – CLC, DU B.COM(H) – SRCC, DU SECTION – 138 TO 143
- 2. LIKE, SHARE & SUBSCRIBE PRESS THE BELL ICON LAWcation
- 3. LAWcation
- 4. How is cheque dishonoured? (S138) 01 02 03 04 05 Cheque is drawn - by the accused on an account maintained by him with a bank Is in discharge of a debt or liability Is presented to the bank within 3 months from the date when drawn Is returned unpaid by the bank – due to – insufficiency of funds OR amount exceeds the limit agreed with the bank Drawee to give notice (LEGAL) of return to the drawer within 15 days of receipt of information about return 06 Drawer must make payment – within 15 days – from receipt of notice from drawee about return of cheque LAWcation
- 5. 02 YEAR S PUNISHMENT FIN ETWICE THE AMOUNT BOT HFINE + IMPRISONMEN T CANNOT SAY HE DID NOT KNOW OF THE INSUFFIENCY OF FUNDS OR THAT AMOUNT BEYOND LIMIT AGREED (S140) LAWcation
- 6. Branch of Drawee’s Bank Cheque delivered for collection through account Cheque presented otherwise through account Branch of Drawee’s bank JURISDICTIO N Section 142 (2) WHERE TO FILE THE CASE? LAWcation
- 7. When will the Court take an action? (S 141(1)) Complaint in writing Complaint within 1 month after drawer fails to act MM or JM I Class LAWcation
- 8. Part Recovery (S143A) If pleads – not guilty Order for interim compensation Interim Compensation – not more than 20% To be paid within 60 days of the order If convicted – reduce the compensation and payment of balance fine If acquitted – Pay back the compensation within 30 days + interest 0 1 0 2 0 3 0 4 0 5 LAWcation
- 10. If pleads – not guilty Order for interim compensation 1 LAWcation
- 11. Interim Compensation – not more than 20% 2 LAWcation
- 12. To be paid within 60 days of the order 3 LAWcation
- 13. If acquitted – Pay back the compensation within 30 days + interest 4 LAWcation
- 14. If convicted – reduce the compensation and payment of balance fine 5 LAWcation
- 15. Things to keep in mind (As Drawee) Retain the bank slip containing remarks Keep the timelines in mind 3m- 15d-15d– 1m Cheque to be in discharge of liability – not gratuitous 2 1 3 4 File cheating case under 420 IPC LAWcation
- 16. Things to keep in mind (As Drawer)Proper entry while filling the cheque. Write A/c Payee Strike off the blank space after name and amount Insert ‘only’ or ‘/’ sign after amount 2 1 3 4 Sign carefully. 2 sample signatures at the back also 5 Reply to the legal notice and initiate payment within 15 days of its receipt LAWcation