Dishonour of Cheque

Define dishonor of cheque. What are the different reasons for the dishonor of cheque?

Ans: Dishonor of cheque refers to the rejection of cheque by drawee bank for payment due to some specific reasons. Bank sometimes refuses to pay the amount of cheque dishonoring the cheque.
The following are some reasons or conditions of dishonoring cheque;
i) When date of issue is not mentioned in the cheque.
ii) When date of cheque has expired.
iii) When back dated cheque is presented.
iv) When wrong account number is mentioned in the cheque.
v) When account number is not mentioned.
vi) When amount written in words and number do not match.
vii) When amount is written either in words or in number only.
viii) When amount is not mentioned.
ix) When signature of drawer does not match with of that specimen signature.
x) When signature of drawer is not found.
xi) When there is not enough amount in account to pay the demand of cheque and no arrangement for overdraft.
xii) When name of payee is not written.
xiii)When bank is informed to stop payment by account holder or court.
xiv) When the cheque is found rubbed and crossed.
xv) When the bank doubts the bearer or payee of chequee.
xvi) When the drawer has closed his account before the presenting the cheque.
xvii) When there is condition mentioned in the cheque or cheque is crossed.
xviii) When the endorsement is not clear in case of an endorsed cheque.


What is endorsement of a cheque? Mention its types.
The process or the act of transferring a cheque from one person to another person, signing on its back is called endorsement of cheque. There are three kinds of endorsement, and they are:
i) Simple endorsement:

ii) Restrictive endorsement: