REASON WHY YOUR CHEQUE MAY BOUNCE


In the light of s.6 of the negotiable instruments act, 1881 a ‘cheque’ has been interpreted clearly as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form “

It is famous today that s.138 has been a highly debatable provision in the banking law circuit. The case which has created buzzes among the legal circuit very lately, i.e. the Bombay high court’s decision in Ramakrishna urban cooperative credit. Society ltd. V. ShriRajendraBhagchandWarma [7] (hereinafter called the ‘Warma case’). In this matter, the respondent had taken loan for his business from the appellant bank and for payment of the loan; some blank cheque were delivered to the appellant. It was also settled by the respondent that he shall pay the sum from time to time in installments. Afterwards, at the time of presenting of the cheque by the appellant, one of these cheque was dishonored on the basis of lack of funds.

If you consider this as a very simple thing as to why your cheque may bounce…but unfortunately it is not. There is lot of reasons to it, and here we are reflecting the same today. Or at least we think we understand but at times overlook some important things for Dishonour of cheque. But need not worry we “legal resolved” provide top advocate for cheque bounce in Pune to solve nitty gritty of check bounce and introduce individual to the remedies n right of same.

Cheque is utilized by lots of people having bank accounts, and with the recent scheme of the jandhanyojana by Prime Minister Narendra Modi, the number of Indians with bank accounts has risen. While most of the people having a bank account use cheque, and even most of us do so and we think we know everything about writing cheque while in fact lot of us don’t. In case if we do know about cheque, are we completely aware of reasons why a cheque is dishonored? Or what is a bad cheque?

Well a bounced cheque is defined as a cheque that the bank declines to clear or honour and is inform to the issuer and the receiver and a nominal penalty is charged. A bad cheque can cause a person to meet with legal consequences if the receiver wishes so and there are often instances where in cheque Dishonour has resulted in significant amounts and can also face criminal charges. Hence it becomes important for one to know the reasons why a cheque can bounce.

Shortage of funds in the account from which the cheque is allotted is one of the main and most that has insufficient fund than the once written on the cheque, and then the bank will not find the enough money to complete the contract and hence will discontinue the payment and dishonor the cheque. It will also charge a minimal penalty on both parties – the issuer and the depositor for this. After this the issuer has two options that either he can grant a new cheque or settle the matter with the receiver/depositor of the cheque; or the receiver of the cheque has a choice to start lawful action against the issuer for non-payment and dishonor of the cheque. Hence it is recommended to always be cautious while issuing the cheque and make sure you have sufficient balance in the account but after all prevention and care bad cheque has become common nowadays and we cannot prevent it also because of our busy life but can solve the referring to legal resolved who provide the best lawyers for cheque bounce in Pune.

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