Dishonour of a cheque is a punishable offence under Negotiable Instruments Act. A cheque bounces when the bank returns the cheque unpaid due to insufficient funds, stop payment etc. A payee has to send cheque bounce notice to the drawer of the cheque and if the drawer fails to pay within 15 days of receiving the notice. The payee has to file a cheque bounce complaint in the court as a legal action under Section 138 of Negotiable Instruments Act. It is punishable with imprisonment up to 2 years, a fine equal to twice the value of the cheque or with both.
The Act imposes deterrent punishment for dishonoured cheques to protect payees.
Compounding of offences is allowed under certain conditions, with specific guidelines for fines.
It covers topics such as cheque validity, stop payment instructions, and legally enforceable debts, including demand notices, liability of companies, and compounding of offences.
The Act primarily aims to provide a criminal remedy for dishonoured cheques, with strict terms and conditions.
The Act also addresses offences by companies or firms, holding them liable for dishonoured cheques.
Demand notices must be issued within 30 days of cheque dishonour.
The jurisdiction to try the offence U/S 138 is determined by the location of the complainant's bank.
The Negotiable Instruments Act provides a legal framework for the use of negotiable instruments in India. It is important to understand the provisions of the Act and the relevant case laws to ensure that negotiable instruments are used in a legally compliant manner. The Act ensures that the transfer of negotiable instrument is simple and efficient, making them an essential tool for business transactions or other legally enfourceable liabilities.
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Divorce is the legal dissolution of a marriage, involving various issues like maintenance/ alimony, property division, and child custody, and requires court's intervention.
Employment issues often involve conflicts between employers and employees, including wrongful termination, workplace harassment, and wage disputes.
A consumer case involves disputes between consumers and service providers over defective products, services, or unfair trade practices, aiming to protect consumer's rights.
Criminal law deals with offences against the state or individuals, encompassing crimes such as theft, assault, fraud, and more, ensuring justice and order.
Child custody cases determine which parent will have legal custody of child, considering the child's best interests and ensuring their well-being and stable upbringing
Dishonour of cheque means when a bank refuses to process a cheque due to insufficient funds or other issues, leading to potential legal consequences for the drawer
Divorce is the legal dissolution of a marriage, involving various issues like maintenance/ alimony, property division, and child custody, and requires court's intervention.
Employment issues often involve conflicts between employers and employees, including wrongful termination, workplace harassment, and wage disputes.
A consumer case involves disputes between consumers and service providers over defective products, services, or unfair trade practices, aiming to protect consumer's rights.
Criminal law deals with offences against the state or individuals, encompassing crimes such as theft, assault, fraud, and more, ensuring justice and order.
Child custody cases determine which parent will have legal custody of child, considering the child's best interests and ensuring their well-being and stable upbringing
Dishonour of cheque means when a bank refuses to process a cheque due to insufficient funds or other issues, leading to potential legal consequences for the drawer
Divorce is the legal dissolution of a marriage, involving various issues like maintenance/ alimony, property division, and child custody, and requires court's intervention.
Employment issues often involve conflicts between employers and employees, including wrongful termination, workplace harassment, and wage disputes.
