Who Is To Blame For A Cheque Bounce – Firm Or Director?
When can a cheque get bounced and dishonoured Presenting of the cheque to the Bank after 3 months Insufficient funds Alterations or overwriting in cheque Stopping of payment by the account holder Non-matching of signature Lack of sufficient funds in the bank account, or The amount on cheque exceeding the amount to be paid in agreement with the Bank Imprisonment extending up to two years, or Monetary fine which may extend to double the amount on the cheque, or Both of the above What Steps Should Be Taken By Payee If A Cheque Issued By A Company Is Dishonoured The cheque should be issued for the reason of discharge of a debt or liability, to invoke Section 138. Secondly, the cheque needs to be submitted to the Bank within 3 months from when it was drawn. After the cheque is returned unpaid by the bank, the payee (receiver of money) should send a legal notice to the Company demanding the Company to make the payment. If the Company has failed to reply or pay ...