What happens if a cheque bounces due to signature mismatch?

When there is unsuccessful processing of cheque due to insufficient funds, incorrect amount or mismatch of signature, the cheque bounces. When the cheque bounces, the payee has to file a legal notice within 30 days of return memo from bank. After this, if the drawer makes the payment, there is no need to file the case.

How can I recover my money from a bounced cheque?

The only way to recover the money of a dishonoured cheque is by filing a civil case. Dear Questioner, We suggest you file a criminal complaint against that person, who issued the cheque.

What happens if your cheque bounces?

In India, a person issuing a cheque will be committing a criminal offence if the cheque is dishonoured (cheque bounce) for insufficiency of funds. Cheque bounce offence is punishable with imprisonment for a term up to two years or with a fine twice the amount of the cheque or both.

Does cheque bounce due to signature difference?

There is no qualitative difference between a situation where the dishonour takes place on account of the substitution by a new of authorized signatories resulting in the dishonour of the cheques already issued and another situation in which the drawer of the cheque changes his own signature or closes the account or …

Can a bounced cheque be presented again?

Answer: Yes, you can present the cheque again in the bank for payment, even if it was dishonoured on the first occasion. However, it goes without saying that the cheque can be presented again in the bank only during the period of its validity. Normally, the period of validity of the cheque is 3 months.

What happens if your cheque bounces in Dubai?

The previous amendment of the UAE Law on dishonored cheques stipulated the drawer can be sentenced to a minimum cheque bounce fine of AED 1,000, and at least one month of imprisonment depending on the cheque amount. The amendment also carries an imprisonment sentence of six months to one year to defaulters.

How do I file a case against a bounced cheque?

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 Instruments Act. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period.

Can a bounced cheque be used again?

How do I verify a signature on a cheque?

Image show the signature on cheque. Handwritten signatures can be verified using online or offline schemes. Online signature can be captured using electronic devices like writing pad or stylus attached to a computer. Offline signature will have only the digitized signature from which required features can be extracted.

How long does it take to settle a cheque bounce case?

A cheque bounce case will realistically take you anywhere from 1 to 2.5 years to conclude. The penalty amount is twice the cheque amount which should be more than enough to cover your expenses and the accused may just want to settle in the meantime.

Why does my cheque bounce if the date is wrong?

The typical problem with the date can be that the date is disfigured or has some mistake, or is not readable or scribbled, will lead to your cheque bouncing. Also, the other reason is that the date has expired or in other words, the date on the cheque is more than 3 months old, from the current date.

Can a bounced cheque lead to legal action?

A bounced cheque also invites legal action is the receiver wishes so, and there are often cases where in cheque dishonour of significant amounts has invited criminal charges. Hence it becomes vital for one to know the typical reasons why a cheque can bounce.

Can date lead to a bounced cheque in India?

As discussed in our post ‘How to Write a Cheque in India’; the date is very important part of the cheque and any difference or problem in the date will lead to your cheque being bounced. Yes, date can lead to a bounced cheque.

What is the validity of a cheque with a date?

A cheque is only valid for 3 months from the date that is mentioned in its date column. For example if the date on the cheque is mentioned as 12/02/2015 then it will be valid only till 11/05/2015. So with that requirement, if you have a cheque with a date 11/11/2014; that cheque is not valid as of 12 Feb 2015.