GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cheque returned for insufficiency of funds. Payee will have right to notice and approach court of law for justice under section 138 of which act?
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Indian Contract Act
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Criminal Procedure Code
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Negotiable Instrument Act
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Payment and Settlement Act
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Explanation:
Detailed explanation-1: -The Supreme Court recently held that under Section 143A of the Negotiable Instruments Act (NI Act), an accused who fails to deposit interim compensation cannot be denied the right to cross-examine the witnesses examined on behalf of the complainant [Noor Mohammed v. Khurram Pasha].
Detailed explanation-2: -If found guilty, the defaulter can be punished with monetary penalty which may be twice the amount of the cheque or imprisonment for a term which may be extended to two years or both. The bank also has the right to stop the cheque book facility and close the account for repeat offences of bounced cheques.
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