Cheque Bounce Remedy and Procedure in Nepal | Cheque Bounce Laws in Nepal

Описание: Cheque Bounce Remedy and Procedure in Nepal

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A cheque is said to be bounced when a bank refuses to make payment in return of the cheque due to various reasons like insufficient fund, overwriting in the cheque, mismatch of signature, expired cheque, etc. Cheque Bounce is also considered as a dishonor of cheque in Nepal.

Laws governing cheque bounce in Nepal
1. Negotiable Instruments Act, 2034 (1977)
2. Banking Offence and Punishment Act, 2064 (2008)

Timestamp:
0:00 introduction
0:20 law governing cheque bounce in Nepal
0:46 remedy under negotiable instruments act
1:06 condition for dishonour of cheque under negotiable instruments act
1:33 case proceeding under negotiable instruments act
2:02 punishment and penalty for dishonour of cheque under negotiable instruments act
2:24 remedy under banking offence and punishment act
2:43 conditions for cheque bounce under banking offence and punishment act
3:00 case proceeding under banking offence and punishment act
3:40 punishment and penalty for cheque bounce under banking offence and punishment act

The Negotiable Instruments Act and the Banking Offence and Punishment Act provide separate proceedings against cheque bounce or dishonor of cheque in Nepal. The aggrieved party has the option to choose the remedies available under these laws.

Remedy under Negotiable Instruments Act
Negotiable Instruments Act provides legal proceedings directly from the concerned District Court in relation to remedy against dishonor of cheque. The concerned party has to file a case of dishonor of cheque within 5 years from the first date of dishonor of cheque.

Conditions for Dishonor of Cheque under Negotiable Instruments Act
In case any person issues a cheque to another person without having sufficient funds in the bank or the funds that have been specified aren't enough as per the contract, then the condition is known as a Dishonor of Cheque. Similarly other conditions for Dishonor of Cheque are false cheque dates, mismatches in signatures, as well as writing the payable amount with the wrong magnitude.

Case Proceeding under Negotiable Instruments Act
• Step 1: Filing of Statement of Claim at the Concerned District Court.
• Step 2: Response of the Defendant at the Concerned District Court.
• Step 3: Witness Examination and Collection of Evidence.
• Step 4: Final Hearing and Decision from the Court.
• Step 5: Appeal to Hight Court (If any)
• Step 6: Execution of Decision (After final verdict from the Court)


Punishment and Penalty for Dishonor of Cheque under Negotiable Instruments Act
In the case of Cheque Bounce in Nepal, the person responsible for the bounce needs to pay the principal amount along with 10% interest. Similarly, the person responsible for the Dishonor of Cheque shall be imprisoned for up to 3 months or shall have to pay a fine of up to three thousand rupees, or both.

Remedy under Banking Offence and Punishment Act
Banking Offence and Punishment Act provides criminal legal proceedings from the concerned Police Office in relation to cheque bounce in Nepal. The concerned party has to file a First Information Report (FIR) of cheque bounce within 1 year from the first date of cheque bounce.

Conditions for Cheque Bounce under Banking Offence and Punishment Act
If any person knowingly issues a cheque without sufficient funds in the bank account to cover it, the situation is referred to as cheque bounce under the Banking Offence and Punishment Act, 2064 B.S.

Case Proceeding under Banking Offence and Punishment Act
• Step 1: Registration of First Information Report (FIR) at the concerned Police Office.
• Step 2: Issuance of Arrest Warrant and Arresting the Concerned Person.
• Step 3: Investigation and Submission of Investigation Report to District Attorney.
• Step 4: Filing of Charge Sheet at the Concerned District Court by District Attorney.
• Step 5: Bail Hearing at District Court.
• Step 6: Witness Examination and Collection of Evidence.
• Step 7: Final Decision
• Step 8: Appeal to Hight Court (If any)
• Step 9: Execution of Decision (After final verdict from the Court)

Punishment and Penalty for Cheque Bounce under Banking Offence and Punishment Act
The individual responsible for the cheque bounce have to pay the principal amount mentioned in the cheque. Additionally, the individual shall be fined with the equal amount mentioned in the cheque. Furthermore, the individual shall have imprisonment for up to three months.

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