"BOUNCED CHEQUE AND ITS LEGAL IMPLICATIONS" 

By 

ONYEKACHI UMAH, ESQ., LL.M, ACIArb(UK)

DAILY LAW TIPS
by Onyekachi Umah,Esq.
(Tip 100)
“How to Save An About To Be Bounced Cheque in Nigeria”

An about to be bounced/dud bank Cheque can be remedied. The issuer of the Cheque should send a countermand order (counter instruction) to his bank ordering it not to place value on such Cheque. He can also send notice to the Payee not to present the Cheque to any bank.

See, Dishonoured Cheques Offences Act, 1977.

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Issuance of a bounced/dud bank Cheque is a criminal offence. Where the issuer of such Cheque is an individual, it is punishable with 2 years imprisonment without fine. Where the issuer is a corporate body, it is punishable with fine of not less than #5,000.00.

See, section 1 of DISHONOURED CHEQUES (OFFENCES) ACT, 1977.

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In our traditional Nigerian banking system, cheque books are only offered to current account owners who are in turn charged on transaction. The present advancement in banking has invoked the offering of savings account with cheque books and quasi-cheque books with limited features and acceptability.

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