Legal Question in Banking Law in India

Bounced Cheque

What are the penalties under the Indian Law for bounced cheque due to insufficient funds

Asked on 5/28/08, 3:16 am

4 Answers from Attorneys

J. Radhakrishnan independent Practice

Re: Bounced Cheque

maximum penalty prescribed in Sec.138 of the Act is imprisonment for two years or fine equivalent to twice the cheque amount or both.

Read more
Answered on 5/28/08, 10:19 pm

Re: Bounced Cheque

case of cheque bouncing falls under N.I.Act and not under IPC.Punishment is 2 years imprisonment and double of the cheque amount.

Read more
Answered on 5/31/08, 6:58 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Bounced Cheque

Maximum penalty is 2 years imprisonment or fine equivalent to the twice of the cheque amount.

Read more
Answered on 6/16/08, 3:24 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Bounced Cheque

Penalties u/s 138 of Negotiable Instruments Act.

A court may ask you to pay the cheque amount at times alongwith interest or compensation which may extend upto the amount of cheque. Also it may give punishment of imprisonment.

Read more
Answered on 5/28/08, 8:03 am

Related Questions & Answers

More Banking Law questions and answers in India