Yes, the payee can claim interest on the cheque amount if the cheque bounces and the drawer fails to make payment. The claim for interest can arise under the following legal provisions: 1. Negotiable Instruments Act, 1881 (NI Act) Section 80: If a cheque carries interest and is dishonored, interest can be claimed at 18% per annum, unless a different rate is agreed upon. Section 138: If a cheque bounces and a complaint is filed, the court can grant compensation, which may include interest on the cheque amount. 2. Civil Suit for Recovery If the payee files a civil suit for recovery, they can claim: Principal cheque amount Interest from the date of dishonor till recovery Legal costs and damages Courts generally award interest ranging from 6% to 18% per annum, depending on the case. 3. Court Discretion in Criminal Cases In a Section 138 NI Act case, courts often order the drawer to pay the cheque amount along with interest. Compensation under Section 357 of CrPC can include interest on the dishonored amount. Conclusion Yes, the payee can claim interest on a dishonored cheque either under the NI Act, by filing a civil suit, or through court compensation in a cheque bounce case. Courts typically award 6% to 18% interest per annum based on the circumstances.
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