Cheque dishonored due to connectivity failure

If a cheque has been presented within 3 months from issuance and does not clear due to connectivity failure i.e., the bank's server was down, there are a few steps you can take:

1. Contact your bank: The first thing you should do is contact your bank and inform them of the issue. They may be able to give you more information about why the cheque did not clear and offer a solution.

2. Confirm with the issuer: You should also contact the issuer of the cheque and ask them to confirm that they have sufficient funds in their account to cover the amount of the cheque. This can help you determine if the issue is with the cheque or the connectivity.

3. Resubmit the cheque: If the issue was due to connectivity failure, the bank would insist that the cheque be resubmitted for clearance once the connectivity issue has been resolved. However, you should ensure that the issuer of the cheque still has sufficient funds in their account to cover the amount.

4. Consider alternate payment methods: If you are unable to resolve the issue with the cheque, you may need to consider alternate payment methods such as electronic funds transfer or a different form of payment.

It's important to remember that connectivity failure is not a common reason for a cheque not clearing. If a cheque does not clear, it is due to insufficient funds in the issuer's account or a mistake on the cheque. As per the Negotiable Instruments Act, 1881 if a cheque is dishonoured which usually means that there are insufficient funds in the account of the person who issued the cheque, there are a few steps you can take:

1. Contact the issuer: The first thing you should do is contact the person who issued the cheque and ask them why it was dishonoured. They may have a valid explanation, such as an error or delay in depositing funds.

2. Give notice to the issuer: As per the Negotiable Instruments Act, you are required to give notice of dishonour to the issuer of the cheque within 30 days of receiving the dishonoured cheque. This notice should inform the issuer of the dishonour and demand payment of the amount due.

3. Wait for payment: Once you have given notice of dishonour, the issuer has 15 days to make payment. If payment is not made within this time, you may take legal action against the issuer to recover the amount due.

4. Legal action: Legal action can include filing a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 which provides for imprisonment and/or fine for the issuer of the dishonoured cheque. You may also file a civil suit to recover the amount due.

All the best.