The law, which stipulates a two-year jail term upon conviction for dud cheque issuers, has rarely been enforced in the country. All such suspects are henceforth to be handed over to the Economic and Financial Crimes Commission (EFCC) for prosecution.
What are the consequences of Dishonour of Cheque?
According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.
What is the penalty for dud cheque in Nigeria?
The penalty for the offence of issuance of dud cheque is a sentence of two years imprisonment with an option of fine but in the case of a body corporate a fine of not less than N 5,000.
What is cheque are they any consequences if a particular given cheque gets bounced?
Consequences of the Cheque Bounce Bank Penalty: The bank imposes a penalty in the form of NSF (non-sufficient fee) in case of a cheque bounces due to insufficient funds in the account, mismatch of signatures or any other technical issue. The court fees vary with the case and the cheque amounts.
What are the types of cheque?
Types of Cheques: Know What are the Different Types of Cheques
- Bearer Cheque.
- Order Cheque.
- Crossed Cheque.
- Open cheque.
- Post-Dated Cheque.
- Stale Cheque.
- Traveller’s Cheque.
- Self Cheque.
What is a dud cheque?
Meaning of dud cheque in English a cheque (= printed form promising to pay money) that has no value because the person who has written it does not have enough money in their bank account to pay it: The offences ranged from theft and bribery to writing dud cheques.
What is the compensation for wrongful Dishonour of Cheque?
Wrongful dishonour of a cheque Section 31 of the Negotiable Instruments Act, 1881 states that when a customer had sufficient balance in his account, the banker is bound to honour such a cheque and if he fails to do so, he shall compensate the drawer for any loss or damage caused by such default.
What is the time limit for cheque bounce case?
As per Negotiable Instruments Act, legal notice must be sent within 30 days from the date of cheque bounce. Thereafter within 15+30=45 days from the date of sending the legal notice, case must be filed.
How do banks handle dud Cheques?
The Bank Shall levy a penalty of 10% on the face value of each dud cheque drawn by a customer 2. The Bank shall further inform the Bank of Ghana of the third consecutive occurrence where a customer persists and issues a dud cheque.
Can a bounced cheque be used 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 is the punishment for dishonour of cheque?
What happens if a cheque is not paid within 30 days?
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.
What happens if your cheque bounces in court?
If a certain person was convicted for a bounced cheque case and has served jail term, he or she stands released after the period. However, if the original complainant files the case again in the civil court for the second time, he or she will have to pay the unpaid amount then or go back to jail on conviction from said civil court.
What happens if the drawer fails to pay a cheque?
The payee gives a notice to the drawer claiming the amount within 15 days of the receipt of the information by the Bank and 5. The drawer fails to make payment within 15 days of the receipt of notice.
