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According to Section 138 Dishonor of cheque where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honor the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment.
Drawer: The person who issues the cheque i.e., ‘author of the cheque’ is called as Drawee.
Payee: The person to whom the amount mentioned in cheque is payable i.e., the person in whose favor the cheque is drawn is called as Payee. (Payee could be the Creditor)
Drawee: The Bank where the Drawer has an account from which the cheque amount shall be paid i.e., the bank who is directed to pay the amount is called as Drawee.
Payee’s Bank: The Bank where the Payee has a bank account in which the cheque amount shall be deposited/credited (especially in case of crossed cheque) or the bank in which payee deposits the cheque is called as ‘Payee’s Banker’
The occurrence of the price of the following event step by step to check the jump or embarrassment check:
If Drawee Bank finds that it is unable to pay the check amount to the payer for any reason, Drawee Bank immediately issues a ‘Check Return Memo’ to the Payment Bank stating the reason for non-payment. The Paymaster & bank manager then gives the Paymaster an unqualified check and memo.
The reason for the bashing bout may be many but this one is listed under section 138 of the Negotiable Instrument Act, where you can send a Notice issued on our website to a non-payable borrower (Drawer) with ‘Insufficient Balance‘ in a Draw account.
If the payer or person in charge of the check believes that the check, once debited, will be refunded a second time, he or she may resend the check within 3 (three) months of the date stated on the check.
However, if the drawer fails to pay and the check is found to be unethical, the payer has the legal right to lodge a complaint against the drawer and start prosecution for that draw.
The following is the prosecution in the event of a defamation check:
The cabinet can only be sued under the following circumstances:
Check Bounce is governed by section 138 of the Negotiable Instrument Act. Any case facing a check, as defined under section 138 of the Negotiable Instrument Act, is a Criminal Offense and therefore the trial is conducted in accordance with the provisions of the Summary Trial of the Code of Criminal Procedure, 1973 (CrPC).
The case relating to the check is heard by the City Magistrate (in the case of metropolitan areas) or the First-Class Magistrate’s Court (excluding major metropolitan cities). Therefore, a complaint against an inactive drawer should be properly made.
In accordance with the latest changes made in terms of the 2015 Ordinance and applicable time rules, a complaint of non-compliance check is made locally as described below:
A complaint or case of non-compliance with a check is lodged at the point where the check was submitted for consideration, thus, the Drawer is responsible for the checking of the check. A case of disrespect for a check cannot be opened by one person but by any organization that defames the Check.
There are two remedies for the shame of a check:
In Civil: – The Paymaster / Drawee may initiate a refund process under order 37 of the Citizens’ Procedure Code, 1908 in the local court without criminal proceedings. The payer receives the money by court order.
In Criminal: – Disregard for a check contravenes section 138 of the non-negotiable tools law, 1881 which provides for imprisonment for up to two years or a fine that can be doubled by the value of the check or both. This case is a bailable, integrated and non-discriminatory case.