Definition
The provision under the Negotiable Instruments Act, 1881 that criminalises dishonour of a cheque for insufficiency of funds or if the amount exceeds the arrangement. Punishment: imprisonment up to 2 years, or fine up to twice the cheque amount, or both. Jurisdiction: the payee's bank branch location. Complaint must be filed within 30 days of receiving a notice of dishonour, after a 15-day demand notice to the drawer.
Related Terms
Cheque BounceNI ActNegotiable Instrument
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates