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One of the most common financial crimes is failing to pay with a check. It's estimated that the country has more than 40 million pending cases like this, according to the lawyer in Gurgaon.
Have you ever faced a situation where your check was returned because the bank refused to accept it?
The most common reason cheques are dishonoured is that most of us have no idea how to open and operate a bank account. As a result, individuals make careless errors when writing cheques. Knowing the essential banking words is vital to protect your money from fraud and keep your cheques from being refused.
When something is no longer valued, it might be said to be dishonourable in general. Cheques are negotiable instruments to demonstrate a debtor's financial responsibility to another party. Issuing a cheque to someone is a promise to pay someone a specified amount.
Cheque dishonour occurs when a transfer fails to go through despite a previously promised payment for some reason during the transaction. Erroneous dates and signatures might lead to a cheque being rejected. It is punishable under the Negotiable Instruments Act, 1881, if a cheque is dishonoured because of insufficient funds. The NI Act 138 clause gives the individual the right to file a criminal complaint with the court.
Advocate in Gurgaon describes section 138 of the Act makes dishonouring a check a criminal offence, including a two-year prison sentence, a monetary fine, or possibly a combination of both. According to Legal Eagle Eye, if the payee decides to pursue legally, the drawer has the option of promptly repaying the cheque amount.