Signature Mismatch on Cheques May Lead to Criminal Proceedings: Supreme Court

According to a Supreme Court notification, if the signature on a cheque does not match with the specimen signature available with the bank, the person who issued the cheque may have to face criminal proceedings.

In case of dishonour of cheque due to the reason account that has been closed, the cheque would constitute a dishonour under section 138 of the Act of Negotiable Instrument Act. The same applies when the cheque gets dishonoured by mismatch of signature.

However, according to the apex court, the account holder must be given a notice for arranging payments prior to the initiation of criminal proceedings against him, in case of dishonour of cheque.

Source: The Hindu Business Line

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