Nowadays, when people start using the online payment mode, banks come into the picture here a customer has to deal with the baking formalities and one of the most useful things in the business is CHEQUES. There are some Cheque Rules which everyone should know
Before using a cheque many things should come in is mind we can say the precautions for using the same. If we use the cheques without any precaution or any prior knowledge then it will create big problems.
So 4 important precautions before using the cheques:
- Make sure the cheque should fulfill all the important details.
- Bank security features.
- Compare the signature and photo.
- The cheque account has sufficient funds available.
Make sure the cheque should fulfill all the important details:
The first thing is the detail of the cheque holder should be correct and all the columns should fulfill the right information. The format of the cheque should be correct also.
Bank security features:
For the normal prudent person in the terms of money, the person always take the precaution and in when the point is the cheque comes into the picture then the security again plays the role because the security of the money is the main concern of the person and in the terms of the money pr cheque, the bank has the liability of the money which is submitted by the person in the bank.
Compare the signature and photo:
When accepting the cheque the signature of the person who issues the cheque should be the same it shows the consent of that person and the authenticity of the cheque and the amount.
The cheque account has sufficient funds available:
Another point is the sufficient money in the back like is a cheque issued by the person about the 4lac and money in that particular account is less than that then this is the case of cheque bounce and it will create the problem which takes the energy and money of the person.
THE SITUATION OF CHEQUE BOUNCE:
Before understanding the situation of cheque bounce let’s understand the 2 provisions related to that:
- Under the Negotiable instrument act, the case related to the cheque bounce is done this act. And one principle is that the presumption is in the favor of the plaintiff because if you gave the cheque to the other person then it will be deemed by the court that you have to give some money to the plaintiff and that’s why you gave that cheque to the plaintiff. Plaintiff does not need to prove anything. The prima facia presumption by the court is for the plaintiff only.
- The second point is if the suit filed against you so make sure to the judge that legally there is nothing is left to give the plaintiff. These two points are there for saving yourself from the court proceeding.
5 points in this situation:
- Cheque bonce is a type of criminal offence, you have to take bail and surety regarding this. And if you are libel for the offense then 2-year punishment and fine have to pay to the court.
- Have the full detail about the person’s account like account number, branch of the bank etc.
- Always right signature, if anyone is not doing the same and the plaintiff explains that the intention is not right or the intention of other person is for fraud then the police can file the complaint about the section 420 of the IPC, and then this will be the more heinous.
- A person should mention the reason or the purpose of the cheque before giving it for security.
- Never give the blanked signed cheque to anyone.
After understanding all the above points and precautions about the cheque, a person always is careful while using the cheque or giving the as well. Related to cheque the most critical situation arises when the cheque bounces and the consequences are explained about and how to save from all these stuff also mentioned.
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