Cheque Bounce Law

Popley fraudster admits cheque scam was ‘stupid’ act

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A FRAUDSTER admitted his attempts to buy luxury items with cheques he knew would bounce were “acts of stupidity”.

Joseph Mason, of Bermuda Close, Popley, Basingstoke, used the unsophisticated scam to steal £2,200 worth of goods such as sunglasses, jackets and gold bracelets, between June and October last year.

Among the stores targeted were Hartley Antiques, in Hartley Wintney, Wickes, in Churchill Way West, Basing-stoke, and the Chineham Centre Opticians.

Edward Phillips, prosecuting at Winchester Crown Court, said: “The circumstances are really very straightforward.

more @ http://www.basingstokegazette.co.uk/news/10562442.Popley_fraudster_admits_cheque_scam_was____stupid____act/

Cheques containing fractions of Re not be rejected: RBI

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RBI had warned that banks which refuse to accept cheques on such grounds from customers will be sternly dealt with If your bank has been refusing to accept cheques for amounts that include fraction of a rupee, it’s against the rules and the bank should be penalised.

In an internal circular issued earlier, the Reserve Bank of India (RBI) had warned that banks which refuse to accept cheques on such grounds from customers will be sternly dealt with.

According to an RBI circular issued in March 2007 (RBI.No.2006-2007/299), banks were advised that cheques issued by clients containing fractions of a rupee should not be rejected or dishonoured.

more @ http://www.indiainfoline.com/Markets/News/Cheques-containing-fractions-of-Re-should-not-be-rejected-RBI/5730062492

Bounced cheque cases down 30% in Qatar

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Qatar’s Supreme Judicial Council has said the number of cases of ‘bounced cheques’ in the country fell by around 30% last year, compared with the previous year, the Peninsula has reported. Cases related to “dishonoured cheques,” however, account for the third highest in the Gulf country, the council said in a report on various types of cases that came up before different courts in 2012. A total of 16,750 cases related to ‘dishonouring’ of cheques came up before Qatari courts in 2012, compared with 23,422 cases referred to the courts in 2011.

more @ http://www.ameinfo.com/bounced-cheque-30-qatar-348644

Dishonouring a cheque is a criminal offence

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We had a car repairing garage in Sharjah. But when my father returned to India for a long time due to some work and I could not handle the business. Rent cheques for the garage were issued from my father’s personal account to the landlord. As soon as I realised we could not pay, so I vacated the place. I was cleared from the case, but the landlord filed a police case against the cheque issued by my father. Unfortunately, the landlord expired recently. What happens to the case against me?

Dishonour of a cheque is a criminal offence punishable with detention or fine in accordance with Article (401) of the Federal Law No 3 of 1987 on the Issuance of Penal Code, which states: “Detention or a fine shall be imposed upon anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed.

The same penalty shall apply to any one who endorses a cheque in favour of another or gives him a bearer draft, knowing that there is no sufficient balance to honor the cheque or that it is not drawable.”

It is assumed that you are not a signatory to the cheques issued to the landlord. Therefore you shall not have any criminal liability on the cheques signed and issued by your father to the landlord. The criminal case filed by the landlord against your father will not go away due to the demise of the landlord. Should your father return to the UAE, he will have to deal with the consequences of this criminal case filed by the deceased landlord against him.

more @ http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=data/legalview/2013/July/legalview_July2.xml&section=legalview

SC: Only signatory of cheque to be tried in case of a Joint account

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The Supreme Court has held that a joint account holder cannot be prosecuted in a cheque bounce case unless the cheque has been signed by each and every person of such account.

The apex court said only the person, who issues a cheque from a joint account, can be made accused in proceedings under section 138 of Negotiable Instruments (NI) Act for dishonour of the cheque.

“We also hold that under section 138 of the NI Act, in case of issuance of cheque from joint accounts, a joint account holder cannot be prosecuted unless the cheque has been signed by each and every person who is a joint account holder,” a bench of justices P Sathasivam and J S Kehar said.

“This court reiterates that it is only the drawer of the cheque who can be made an accused in any proceeding under Section 138 of the Act,” the bench further said.

The verdict gave relief to a woman who had challenged the summons issued to her for the dishonour of cheque issued by her husband from their joint account.

The Bombay High Court had refused to quash the summons issued by the trial court to her along with her husband.

source: http://www.business-standard.com/article/pti-stories/joint-account-only-signatory-of-cheque-to-be-tried-says-sc-113070200900_1.html