Dishonor of Cheques
The bouncing of cheque is a criminal offense as per Indian law and there can be imprisonment for up to two years. There can be a monetary penalty or punishment i.e. both may be made applicable in case of dishonor of cheque. In case of dishonor of cheque, you have the option of consulting a lawyer and we at Legale Solutio have lawyers, specialized in cheque bounce cases who can help you in offence relating to dishonor of cheque.
Dishonor of cheque can happen in case of an insufficient fund in the account of the drawer. It can happen also when the drawer issues cheque on a closed account and no functioning of account due to certain reasons.
The case of dishonor of cheque is a civil liability and it provides for a fine which is twice the amount of the dishonored cheque. On the other hand, as criminal liability, it can provide imprisonment for two years. Our team is thorough about handling the dishonor of cheques and we have a very successful record of providing justice to the aggrieved payees who suffered financial losses due to dishonor of cheques.
The offense of dishonor of cheque occurs if the drawer fails to make payment against dishonored cheque within 15 days of demand raised by the payee by way of demand notice. The demand notice is to be served by the payee within 30 days of dishonor of cheque. In case the drawer fails to make payment within 15 days, a complaint under Section 138 of the Negotiable Instruments Act, 1881 can be filed against the drawer of the cheque.