Of Law & Legal
Cheque Bounced & Cheque Dishonoured – Can You Land In Jail?
Cheque Dishonoured happens due to irregular sign, wrong date, etc, but Cheque Bounce occurs only due to insufficient funds.
Cheque Bounce
If the cheque issuer fails to make a fresh payment within “30 days” of receiving the notice, the payee has the right to file a criminal complaint under “section 138” of the Negotiable Instrument Act.
Cheque Dishonoured
According to “section 138 “of the Negotiable Instrument Act, Cheque Dishonoured is a criminal offense; its punishable by imprisonment for up to two years with a penalty, which is twice the cheque amount.
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