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Gujarat

Gujarat ranks third in country in pending cheque bounce cases

by TLAteam December 23, 2024December 23, 2024
written by TLAteam December 23, 2024December 23, 2024
Gujarat ranks third in country in pending cheque bounce cases

More than 4.73 lakh cheque bounce cases are pending in various courts in Gujarat. The state ranks third among states in the country with the highest number of pending cheque bounce cases.

Business News

According to data released by the National Judicial Data Grid, Rajasthan has the highest number of pending cheque bounce cases, with 6.41 lakh. Maharashtra ranks second, with 5.89 lakh cases. Gujarat ranks third with 4.73 cases related to cheque bounce. These cases are prosecuted under Section 138 of the Negotiable Instruments Act.

A pilot study was also conducted in the top five states with the most pending cheque bounce cases. The reasons include insufficient funds in the bank account, the account being closed, errors in writing, mistakes in account numbers, overwriting, the cheque exceeding its validity period, or the absence of a stamp on a company cheque.

As per the Negotiable Instruments Act, dishonouring a cheque is considered a punishable offense. It carries provisions for up to two years of imprisonment, a fine, or both.

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