Ways of Defending a Case Against Negotiable Instruments Act
The Negotiable Instruments Act primarily deals with a paper that represents an amount entitled to a specific person. You can also transfer the same amount to another person by delivering the same. The act is applicable whenever a check gets bounced or dishonored, and the payee has not received any cash to deliver the goods or services. In this article, we will discuss different ways of defending a case against this act. How can you defend a case against this act? Payees are not always the culprit when the check gets bounced. It can be due to several reasons which can help you to defend your case. We have mentioned some of them below. • When the check bounced acts like a security If the check accused proves that it was given as a security deposit and not as a discharge of any liability or debt, this act is not applicable. • Loan-related to unaccounted money
This act is non-liable to pay for any cash amount accounted for. Thus if there is any loan for unaccounted cash, no one can legally force you to repay the money. • Dispute signature of the accused on the cheque If there is any dispute or mismatching of the accused signature on a check, the banker will announce it as bounced. According to the Contract Law/ Law of Contract, the banker requires to show proof of evidence relevant to the signature. End Thought This act plays a significant role in preventing cheque misuse and ensures that all the transactions are correctly done to penalize the check bounce offense. You can also defend your cases if you think you have encountered a fake check bounce case. But, be careful while dealing with such cases as they need accurate transaction proofs.