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Section 117 — Cheque Dishonour Penalties
117
117
Cheque Dishonour Penalties
Negotiable Instruments Act
Chapter XVII: Of Penalties in case of Dishonour of certain Cheques for insufficiency of funds in the accounts
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Reviewed by Adv. Shailendra Babbar, Seasoned Advocate · Practicing since 31 yearsNon BailableCognizableNon Compoundable
🗣️ Simple Explanation
If your cheque bounces (isn't honored by the bank), you can face jail time or a fine. The punishment depends on the amount of the cheque and the judge's decision.
⚖️ Punishment
Imprisonment up to 2 years, or fine up to twice the cheque amount, or both.
💡 Real Life Example
A issues a cheque for ₹50,000 to B. The cheque bounces due to insufficient funds. A can be imprisoned or fined up to ₹1,00,000.
🛡️ KNOW YOUR RIGHTS
- •You have the right to file a case if a cheque issued to you bounces.
- •The drawer of the cheque has to be given a chance to pay the amount before legal action.
- •You can claim the cheque amount plus interest and legal expenses.
Sources & References
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Negotiable Instruments Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.
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