Q: Is dishonour of cheque a criminal offence ?

Ans: The dishonour of cheque is not an offence punishable under criminal law and the holder of a cheque had an only civil remedy and if the holder of cheque wanted to make it a criminal offence he had to take recourse to section 420 of Indian Penal Code alleging cheating on the part of the drawer of the cheque. The punishment provided for such cheating under section 420 of the Indian Penal Code is imprisonment up to seven years as well as a fine. Two things are important for the implication of section 420 of the Indian Penal Code i.e., dishonest intention as well as men’s rea. If the fraudulent or dishonest intention is absent, the question of committing an offence under section 420 of the Indian Penal Code does not arise.
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