What is bouncing of cheque ? Explain the provisions of negotiable instrments act on bouncing of cheque.
Answers
Answer:
bouncing of cheque means that the cheque could not be processed due to shortage of funds in an account.
under the negotiable instrument act , a bouncing of cheque leads to issuing of a legal notice to the issuer of the cheque , if the person doesn't provide any satisfactory answers to reason the bouncing of cheque a case is filed against him/her . and if he doesn't shows in the case,a available warrent could also be issued.
also, in the recent amendments passed in 2018 it allows the Court trying an offence related to cheque bouncing, to direct the drawer to pay interim compensation not exceeding 20% of the cheque amount to the complainant within 60 days of the trial court's order to pay such compensation.
Answer:
Explanation:
A bounced check is slang for a check that cannot be processed because the account holder has nonsufficient funds (NSF). Banks return, or bounce, these checks, also known as rubber checks, rather than honoring them, and banks charge the check writers NSF fees.
he drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
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