It is not only unethical but is an offense to issue the bogus cheque with the intention to dishonor it. Dishonoring the cheque can put behind the bars with punishment or heavy penalty. It is a crime whatever the reason was behind the dishonoring of the cheque. It may be was due to the signature difference, absent of particular stamp, insufficient funds, altered signature or expired account. Whatever the reason, It is the liability of the payer to clear the cheque he issued on due time.
The Punishment of Cheque Bounce
- Cheque bouncing may put the cheque payer in jail for a period of 3 years.
- The heavy fine can be imposed by the court.
- If the cheque was issued on behalf of the company the cheque signatory or CEO will be liable and penalized.
Action Against the Dishorning Of he Cheque
- The cheque should have been presented in the bank within the six months of the cheque date or within the validity of the cheque.
- Make sure to get it stamped by the bank with the reasoning of bouncing.
- There is no restriction on the number of times the cheque was presented. On due cheque date, the owner is responsible to clear the cheque.
- Inform the payer about this dishonoring of the cheque. Courts do not rely on lame excuses of informing, away it is necessary to send him the written notice to the cheque owner informing him the reason for cheque bouncing along with complete details of cheque number, bank, and date.
- Send the written notice information within the 30 days of information received from bank of not clearing the cheque.
- The notice should be sent through registered mail by which the receipt of the notice is acknowledged.
- If no response is seen after the 15 days of notice, FIR (First Information Report) can be registered in Police Station according to Law 489-F (PPC) Pakistan Penal Code.
- To file the complaint present the copy of the legal notice sent, bounced cheque copy, the reasoning of that payment against which cheque was issued and other details.
- Please heed that cheque is a negotiable instrument, FIR does not mean that it will recover the payment. Chances are there that the payer will pay the liable payment due to the fear of punishment or jail. Settlement can also be done to receive the payment by parts or against some other offering. It is good to negotiate before going to the police and court, he may have some serious crisis or valid reason behind.