When a bank cheque can be termed as bounced under the provisions of N I Act ?

Question

Accepted Answer

A bank cheque can be termed as bounced under the provisions of N I Act if it is dishonored by the bank.

A cheque is considered bounced if it is presented for payment and the bank refuses to honor it due to insufficient funds, account closure, or other reasons.
The bank must provide a 'Cheque Return Memo' to the payee, stating the reason for dishonor.
The payee can take legal action against the issuer of the cheque under the provisions of the Negotiable Instruments Act.
The issuer can be penalized with imprisonment or a fine, or both, if found guilty.
However, there are certain exceptions and defenses available to the issuer, such as a stop payment instruction or a genuine dispute over the debt.
The payee can also initiate a civil suit for recovery of the amount due, along with interest and costs.
The time limit for filing a complaint or a suit varies depending on the nature of the case and the jurisdiction.
The payee should consult a lawyer for proper guidance and representation.

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