Home / Legal Explainers / Money & Property / Money / Cheques / Settlement out of court for cheque bouncing

Settlement out of court for cheque bouncing

Last updated on Jun 1, 2022

In a cheque bouncing case, there is a possibility for settlement out of court. When a criminal complaint is filed for a cheque bouncing case, the law allows for settlement. This is done through a legal concept called compounding of offences.

In this process, the payee/holder of the cheque agrees to not file a court case or agrees to withdraw his court case in exchange for some compensation (usually monetary).

This can happen at any stage of the court proceedings.

The law allows such an agreement to reduce litigation and burden on courts.

How useful was this post?

Click on a star to rate it!

Average rating 4.2 / 5. Vote count: 6

No votes so far! Be the first to rate this post.

Please share your feedback about this post!

Sharing feedback will help us improve our content. Tell us how!

If you want to keep your feedback confidential, please mention it in your feedback. If you have a question, please ask us in the comments or Ask Nyaaya sections.

Comments

D.P. Gautam Advocate

August 27, 2023

Very nice and befitting knowledge in various concepts of Law we get her about current affairs through judgements D.P.

Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Have a question you want to ask our legal experts?

Ask Nyaaya

Related Resources

Encash a cheque

Process of encashing a cheque depends on whether it is a bearer cheque or order cheque. There are multiple modes for the same.

Endorsing cheques

By endorsing the payee can use the same order cheque to pay to someone else by writing that person’s name behind the cheque and signing it.

Cheque Bouncing

A cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque.

Order Cheque

An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash.

Cheque Truncation System

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form.

Crossed Cheque

Crossing a cheque means that it cannot be transferred to anyone else. These cheques can only be credited to the payee’s account.