Can slight difference in signature cause a cheque bounce

869 votes

The answer is “yes”. In a case where the cheque is returned unpaid by the bank on the ground that the signature of the drawer on the cheque differs from his specimen signature on record of the bank, a case of dishonour of cheque punishable under Section 138 may be made out if other ingredients of the offence are satisfied.

Advocate Dhanashree V. LawRato

748 votes

Hi
U can file the case, but mean it's better approach the bank, & find out abt the balance is more than the cheque amt, if not u have a better case. Otherwise u don't have good case, then u can decide to take for civil case.

Advocate Nagendra Prasad LawRato

635 votes

Hi... yes difference in signature is also one of the grounds which attract section 138 of Negotiable instrument act and you can file a case for the same reason before jurisdictional court . where your bank comes.
Thank you

Advocate Rama Chandra Shenoy LawRato

971 votes

You can not file a cheque bounce case for the reason signature difference. The said reason does not attract sec.138 of NI Act.
on the reasons mentioned in the return memo i.e, Account closed, insufficient funds and other reasons, you can file a criminal case u/s 200 of Cr.P.C. r/w sec.138 of NI Act

Advocate Rajeev S Vadrali LawRato

493 votes

A slight difference in the signature on a cheque can indeed lead to a cheque bounce. When a cheque is presented for payment, the bank verifies the signature on the cheque with the specimen signature available with them. If there is a noticeable variation or mismatch between the two signatures, the bank may dishonor the cheque, leading to a bounce.
Here's what happens when there is a signature mismatch in a cheque:

1. Cheque Dishonor: If the bank detects a signature mismatch, they may dishonor the cheque, marking it as "signature differs" or "signature mismatch."
2. Notification: The bank will typically inform the payee (the person to whom the cheque is issued) about the dishonored cheque and the reason, which is usually the signature mismatch.
3. Legal Consequences: The payee may choose to take legal action against the drawer (the person who issued the cheque) for the dishonored cheque. This can include sending a legal notice demanding payment and, if necessary, filing a complaint under Section 138 of the Negotiable Instruments Act, which deals with cheque bounce cases.
4. Resolution: To resolve the issue, the drawer may need to settle the payment and issue a new cheque with a signature that matches the specimen available with the bank.
5. Charges: In some cases, banks may charge fees or penalties for cheque dishonor due to a signature mismatch.

Advocate Chikirsha Mohanty LawRato