Cheque dishonor is a known crime in Bangladesh. Once upon a time, there was no currency in the transaction. People used to trade goods for goods.
The coin has come in time. Currency is now one means of exchange. The medium of exchange has improved more at present.
Various public-private banks have introduced advanced transaction systems by cheque or order.
On the one hand, the cheque system has made the medium of exchange easier, frauds using this medium are also happening nowadays.
Starting with big entrepreneurs, almost everyone is now transacting enormous sums by bank cheques.
Besides, bank cheques have become a big part of security. Suppose you have sold goods worth BDT 10 lakh, of which they have paid BDT 5 lakh in cash and BDT 5 lakh in bank cheques to you.
When you went to the bank with the bank cheque for cash, the bank authorities informed you that the amount equal to the cheque is not in the account.
So you could not cash the money. What do you do now?
Bangladesh has a law called the Negotiable Instruments Act, 1881, which deals with several remedies and discussions on cheque dishonor.
A case of cheque dis-honor can be filed under section 138 of this Act.
Now let’s see when a cheque is dishonored. If there are insufficient funds or money as a bank, it means less than the amount mentioned in the cheque, if the person who issued the cheque does not match his signature, if the amount and words mentioned in the cheque do not match, if the cheque expires A bank cheque may be dishonored if the cheque is scratched, the cheque is tampered with and it is not attested with full signature.
If they dishonor the cheque for any of these reasons, your first duty is to inform the cheque issued unofficially.
If you deny or do not resolve a matter, you can take action under this law.
Under Section 137, a cheque rejection case usually has to be filed in court, not in the police station.
This is what we call a CR case or a complaint register case. Keep in mind that if you want to file a cheque dis-honor, you must have a limitation, otherwise, it will be difficult to file a case.
The cheque has to be deposited in the bank for cashing within six months of receiving the cheque from someone or before it expires.
Within thirty days of the day the bank rejects your cheque, it must give the cheque legal notice of the cheque dishonor through the lawyer along with the cheque dishonor slip.
Registered post must send the legal notice to the last address or business address of the issuer of the cheque, along with the receipt.
After that, a widely circulated national daily will have to publish notification.
Once all these works are done, a case has to be filed in the court stating the exact date, cheque number, name, and other necessary matters, and copy proof of everything.
We consider a cheque dishonor a criminal offense. Although bail can be granted if the accused appears in court after receiving the summons and applies for bail, and if the court does not appear after receiving the summons, bail can be granted.
Sessions courts usually try such offenses under the NI Act. The offense carries a maximum sentence of one-year imprisonment and a fine of three times the amount mentioned in the cheque.
If the respondent wants to appeal against the verdict, he has to submit 50% of the amount mentioned in the cheque to the Sessions Court within thirty days of payment of the penalty.
Most times, a case of cheque dishonor cannot proceed because of the limitations imposed by this Act.
We can file in which case a case of breach of trust and fraud under Sections 406 and 420 of the Penal Code.
The law opens up many avenues for criminals to be caught, just need the right advice.
So if the cheque is dishonored, consult your wise counselor or lawyer and it will help you to get your desired money back.
Translated By Arpita Sharma.