Cheque Bounce Crime and Legal Remedy in Nepal
September 29, 2021
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:
Banking Offence and Punishment Act, 2064
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
- Cheque bounce is considered as Government Case- initiated by the government,
- FIR in Police Office.
- 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:
- Imprisonment up to 3 months of defendant
- Fine up to 3 thousand
- Or Both
2. Legal Remedy of Cheque Bounce Crime Under Negotiable Instrument Act, 2034:
- Dishonor of the cheque or cheque bounce is considered as individual party case- initiated by aggrieved individual (Victim).
- Victim file petition in district court.
- 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:
- Amount mentioned in the cheque
- Interest of the amount in cheque
- 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
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