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Cheque bounce

280 views 2 replies

Shivani

Learner

1881 Points Joined December 2012

if a cheque bounces on which name of one director is there who signed it .

can we hold other directors of the company (whose signature is not there on cheque) also accountable and take them to court.

please quote relevant section of law.

regards

shivani

Replies (2)

section 141 of negotible instruments act you need to refer too...every director who was responsible for conduct of business shall be accountable if cheque is dishonoured. If one has to defend himself then he has to prove that he has acted diligently and has no knowledge of the dishonour

varsha seo

24 Points Joined June 2022

The check may bounce if it has expired or if there is a problem with the date when it was issued. Payments may also be halted by the issuer. In either case, the check is considered dishonored. A bank may dishonor a check for a variety of reasons.