Cheque Bounce Crime and Legal Remedy in Nepal

September 29, 2021

Introduction:

Cheque bounce crime occurs in situation in which the receiver will not be able to exchange the issued cheque due to various reasons such as overwriting, mismatch of the signature, insufficient fund etc.

Nepalese Laws that address the  cheque bounce crime are:

1. Banking Offence and Punishment Act, 2064

2. Negotiable Instrument Act, 2034

Victim of Cheque bounce can seek legal remedy according to either law mention above.

Banking offence and Punishment Act, limits cheque bounce as the drawing of the cheque that constitute its bounce due to the insufficient fund.

1. Legal Remedy of Cheque Bounce Crime Under Banking Offence and Punishment Act, 2064

1. Cheque bounce is considered as Government Case- initiated by the government,
2. FIR in Police Office.
3. Time Limitation for filing FIR is one (1) year from the last date of cheque bounced by bank and financial institution.

Court Process for Cheque Bounce  Legal Remedy in Nepal: 

In this court process victim can claim:

1. Imprisonment up to 3 months of defendant
2. Fine up to 3 thousand
3. Or Both

2. Legal Remedy of Cheque Bounce Crime Under Negotiable Instrument Act, 2034:

1. Dishonor of the cheque or cheque bounce is considered as individual party   case- initiated by aggrieved individual (Victim).
2. Victim file petition in district court.
3. Victim can file case within five (5) years from the last date bank and financial institution bounced the cheque.

            Court Process for Cheque Bounce Legal Remedy in Nepal

In this court process aggrieved party (victim) can claim:

1. Amount mentioned in the cheque
2. Interest of the amount in cheque
3. Compensation/ fine form defendant.

Thus  Victim are privileged to choose either of the alternative legal proceedings for Cheque Bounce Crime and its Legal Remedy in Nepal

Disclaimer: All contains available here are for general information purposes. Proper legal solution always depends on your particular circumstances thus seek the advice from an attorney who can provide assurances of the  information contained herein and interpretation of it.  All liability with respect to actions taken on the basis of site’s information hereby expressly disclaimed.