Cheque Bounce Cases: Court imposes fine of Rs 3,03,000 and Rs 1,02,000 on two individuals; check out full details

A cheque can bounce for several reasons like insufficient funds, incorrect date, signature mismatch, technical reasons, stale cheque, or closed account among others.  

ZeeBiz WebTeam | Feb 05, 2025, 02:23 PM IST

A bounced cheque is one that a bank refuses to process because the account holder does not have sufficient funds. This is sometimes referred to as a rubber cheque. In this case, the bank may charge a fee to the cheque writer or they may be imprisoned for up to two years. Recently, two individuals were fined in two different cheque-bounced cases. Take a look:

Images: Pixabay, PTI

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What is the first case?

What is the first case?

In the first instance, the 9th JMFC Court in Vashi, Thane district or Pune imposed a Rs 3,03,000 penalty on Naveen Acharya, the owner of V5 Tech Engineering Works of Brahmavar and a Mangaluru resident, in a cheque bounce case. 

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What did the court say in Naveen Acharya's case?

What did the court say in Naveen Acharya's case?

The court's order said that if he failed to pay the penalty, he would be imprisoned for three months.

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Naveen Acharya case: Full details

Naveen Acharya case: Full details

Naveen issued the cheque after buying sports equipment from Prime Sports Company in Mangaluru. However, when the cheque bounced, the firm's owner took legal action. After hearing both sides, the court determined that the cheque issuer purposely bounced the cheque.

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What is the second case?

What is the second case?

In another case, the Senior Civil Court in Belthangady, imposed a Rs 1,02,000 fine on a person named Nizamuddin. 

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What does the court say in second case?

What does the court say in second case?

If Nizamuddin does not pay the fine, he will face a six-month jail sentence, as per the court's order. 

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Who complained about this?

Who complained about this?

Pawan Kumar of Charmady Village has filed a cheque bounce allegation.

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Reasons for cheque bouncing

Reasons for cheque bouncing

A cheque can bounce for several reasons like insufficient funds, incorrect date, signature mismatch, technical reasons, stale cheque, or closed account among others.

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Check bounce is a crime in India

Check bounce is a crime in India

In India, check bounce is considered a crime.  According to Section 138 of the Negotiable Instrument Act 1881, bouncing of a check is a punishable offense and apart from this, there is a provision of two years of imprisonment or fine or both.

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What happen when a cheque bounces

What happen when a cheque bounces

When a check bounces, the bank first gives a receipt to the creditor, in which the reason for the check bounce is explained. After this, the creditor can send a notice to the debtor within 30 days. If no response is received from the debtor within 15 days of the notice, the creditor can go to court. The creditor can file a complaint in the magistrate's court within a month. Even after this, if he does not get the amount from the debtor, he can file a case against him. If found guilty, imprisonment up to 2 years or fine or both can be imposed.

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What to do to minimise the risk of bouncing a cheque

What to do to minimise the risk of bouncing a cheque

- You should maintain a minimum balance in your bank account.
- Overdraft protection can also be used.
- You can use a debit card, credit card, UPI, or cash instead of cheques.

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