When a check bounces
Condition in
which failure of check to converted to money is called check bounce. It may be
due to many reasons. Mainly it is due to lack money in the account who provided
the check. Also may be due to difference in signature, date alteration may also
be a reason. Mistakes in check also lead to bouncing.
If check bounces
bank has right to take compensation, or can charge a police case may it leads
to imprisonment also.
If check bounces
It is good to
ask the party about that money is sufficient in their account for changing the check.
It is only applicable in parties having mutual understanding. It is not
applicable in all time. If it is not possible as per negotiable instrument act
section 138 take legal actions is the only way. As per Indian penal code check bouncing is a
cheating case. As we early stated about negotiable instrument act section 138
account holder may got imprisonment also.
If a check again
bounces you can take legal action against him. As part of legal action from the
day got return memo to 30 days victim can send advocate notice. Notice should
be contented of all the reason for check bouncing.
Account holder who gives the check should
remit the payment in any way otherwise the legal case will charged to
magistrate court. If the money is not remitted, legal case should be charged to
after 15 days or within 30 days. Charging case after this period due to late
submission case will not attend the court. After hearing account holder may got
imprisonment or compensation of a double the amount as punishment. Account
holder can give appeal with in 1 month.
From court to arbiter
Central government
seriously thinks about treating check cases all over India which are
accumulated in different courts. For that purpose for making of law and order
central government elect a ministry team for that.
According to the changes they suggested are
implementing on the way. By this changes check cases are attending through arbitration
or lokadalath.In arbitration according to the opinions from both side case will
compromised.
There are about 40 lacks of check cases are
in even supreme courts to be compromised. There is no wonder in that.
if we want to stop the case of check bounces........................do one things,when the check party deposit money in the bank
ReplyDeletethat moment cut amount of check&cut the penalty 3or 4 times of amount & transfer the amount automatically to the parties account ,,,,if wherever they start other account the other bank also........................&one more thing all bank's are connect to each other ..........................