However, if the drawer pays the cheque amount to the payee within 15 days of receipt of the cheque bounce notice, no office is committed by him, and legal action cannot be instituted against him for cheque bounce under section of the Act. Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice.
It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state. Get your company registered in 10 days Incorporate your business with ease.
Get Expert Assistance Thank You for sharing your details. Our experts will get in touch with you shortly. Get an Expert. Was this article helpful? Have a query? ITR Resources. Mutual Fund Resources. Terms Privacy Legal. Sanjeev Sinha. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. ET Online. Kumar, a businessman, always prided himself on being financially well organized.
From maintaining a monthly financial budget to keeping accounts, he was sure that he was keeping a tight leash on his numbers, be it personal or business-related. On further research, he learned that an unintended and inadvertent cheque bounce was the culprit Cheque bounce, in fact, is one of the most common financial offences in India that can lead to disastrous consequences for the issuer. Here is a look at the various ways in which a bounced cheque can affect you: Penalty by the bank: If your cheque happens to bounce due to insufficient funds or any other technical reason like signature mismatch, both the defaulter and the payee are charged by their respective banks.
If the bounced cheque is against the repayment of any loan, you would have to additionally bear the late payment charges which vary from Rs to Rs along with the penalty fee charges by the bank. Securities and Exchange Commission BankBazaar. ETPrime stories of the day Investing Bad bet or value buy? Logistics There is a base, Gati hasn't destroyed itself. Subscribe to ETPrime.
Browse Companies:. Find this comment offensive? The internet is not a lawyer and neither are you. Talk to a real lawyer about your legal issue. Now a cheque is valid for three months and there is no restriction for you to present the same for encashment within that time.
You can definitely re-present the cheque again if the said period of three months has not elapsed. A cheque can be presented many numbers of times in 3 months till it comes within 3 months and bank endorsement should have insufficient funds then u can present many number of time so present it and get encashed. Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.
You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato. Need Help? I won't keep you waiting. Can a re-bounced cheque be used again I have submitted a cheque that was bounce, Then i consult with cheque issued person - He told me already deposited the amount in his bank account.
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