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The rule regarding the check bounces compensation changed

Wednesday - July 31, 2019 12:04 pm , Category : WTN SPECIAL
Your 'caution' can save you only in check bounce
Your 'caution' can save you only in check bounce

20% interim compensation for the complainant if the check bounces

JULY 31 (WTN) - In the modern era, the trend of Internet banking has increased significantly for the transactions of rupees. At the same time, with the help of the UPI and other mobile apps, you can transfer the small amount of money to anyone. But, many government transactions and large transactions are done only through checks. But, it has often been seen that people have to face a lot of trouble when a check bounces. From time to time many cases of check bounce had come in the Supreme Court, after which the court amended the rules of check bounce.

Let us first tell you how does a check bounce after all? There are several reasons for the check bounce. One of the reasons is that when there is no sufficient amount in the check issuer's account. Like if someone has given you a check, and you deposit it in the bank to get cash, then it is important that the issuer's account should have as much money as he has issued the check. If there is no such money in the issuer's account, then the bank dishonors that check. In this way the check is bounced when the check is dishonored.

There are more other reasons for a check bounce, like if your account is freeze for some reason, your check may still be bounced. If your signature on the check is not matched, then your check may still be bounced. At the same time, your check may be bounced due to wrong name or date in check, making changes in the amount and overwriting.

According to the new rules of check bounce, now the complainant will get interim compensation in case of a check bounce. The Supreme Court has clarified that in the cases of check bounce amendment of Section 143-A of Negotiable Instrument Act was revised in 2018. Now after the amendment, the complainant lodging the complaint will get the right to get 20 per cent interim compensation in case of a check bounce.

For your information, let you know that under the provisions of Negotiable Instrument Act Section 143-A, there is a provision that if the case of a check bouncing is pending in the court, then the defendant will have to give 20 per cent interim compensation to the complainant. The Negotiable Instruments Act was amended to provide that in case of a check bounce, the accused will have to deposit 20 per cent of the amount of money of the check already in the court. If the decision in the lower court comes against the accused and appeals to the upper court, then in this situation he will have to deposit 20 per cent of the total amount of the check in the court.

In case of check bounce under Section 143 of Negotiable Instrument Act, there is a provision of maximum penalty of one year jail and up to 5,000 rupees fine as per provisions of section 262 to 265 of CRPC. So we advise you that whenever you issue a check, first of all check whether there is sufficient amount in your bank account or not. At the time while issuing of a check, the name, amount, date and the most importantly your signature should be correct. If you take care of these precautions, then your check will not bounce.