Dishonour of cheques is a criminal offense punishable by imprisonment for a term up to two years, or with a monetary penalty or with both. Dishonour Of Cheques. With the advent of payment through cheques, monetary transactions became much easier. In place of bundle of notes a piece of. Supreme Court has held time and again that a cause of action for filing a complaint under section accrues to the drawee of a cheque only after a notice is issued to the drawer within the prescribed period after receipt of information by him regarding the dishonour of cheque and the subsequent failure of the drawer.


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Where dishonour of cheque was on the ground that signature of drawer of cheque did not match specimen signature of available with the bank, even then it would attract the penal provision of section of the Act.

A cheque issued in illegal transaction would be invalid and dishonour of cheque. In Goa Plat Dishonour of cheque.


Chapter 17 containing section to dishonour of cheque introduced in the act with the object of inculcating faith dishonour of cheque the efficacy of banking operations and giving credibility to negotiable instruments in business transactions.

AIR SCW ; AIR SCAIR SC Supreme Court has also held that for the directors of the company to be made liable for an offence under secthe complaint must contain specific allegations against directors as to how directors are in charge and responsible for conduct of business of company.

Mere allegation in complaint that accused persons are directors and responsible officers of the company is not sufficient. Various High courts and the Supreme Court have explained this many a time.

Complaint in respect dishonour of cheque such a cheque issued as a gift, is not maintainable.

On each presentation of the cheque and its dishonour a fresh right — and not cause dishonour of cheque action — accrues in his favour. Can a Cheque bounce case be filed against companies and firms? Is there a time limit to file a consumer complaint? You must file the complaint within a month of the expiry of the notice period.


In dishonour of cheque of a delay, you have to show sufficient and reasonable cause for the delay. It is equal to carrying cash but one can travel safely without carrying huge amount.

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They can be encashed abroad where foreign currency is normally acceptable. Dishonour is dishonour of cheque 2 kinds: And also if there are certain circumstances when presentment for payment is excused and the instrument is deemed to be dishonoured even without presentment.


Thus when the maker, acceptor or drawee intentionally prevents the presentment of the instrument is deemed to be dishonoured even dishonour of cheque presentment. If the name of the payee is absent or not clearly written.

Dishonour of Cheque - Section of the Negotiable instruments Act

If the amount written in words and figures does not match with each other. If the account number is not mentioned clearly or is altogether absent. The remedy available dishonour of cheque civil court is a long drawn matter and an unscrupulous drawer normally takes various pleas to defeat the genuine claim of the payee6.

Section has converted civil liability into criminal offence. dishonour of cheque

What is dishonoured cheque? - Quora

This has been inserted by the parliament with the object and purpose of holding a person criminally responsible for his acts in commercial transactions trade and business dealings with people carried out carelessly dishonour of cheque without sense of responsibility7. Offence under is an offence without any dishonour of cheque rea.

It is not a criminal offence in real sense as it does not require mens rea, like few other criminal offences, but as public interest is hampered by such offence so it has been made a punishable offence.

It includes strict liability.

Dishonour Of Cheques

Creation of the strict liability dishonour of cheque an effective measure by encouraging greater vigilance to prevent usual callous attitude of drawers of cheques in discharge of debts. The circumstances under which such a dishonour takes place dishonour of cheque not of much importance.

Any reason for dishonour is an offence under section of the NI Act. Marginal Note stating "Dishonour of cheque for insufficiency etc.