Cheque dishonor charges Clause Samples
The 'Cheque dishonor charges' clause defines the fees or penalties imposed when a cheque issued as payment is not honored by the bank, typically due to insufficient funds or other reasons for non-payment. In practice, this clause specifies the amount the drawer must pay if their cheque bounces, and may outline the process for notification and recovery of the dishonored amount. Its core function is to deter the issuance of bad cheques and compensate the payee for administrative costs and inconvenience caused by dishonored payments.
Cheque dishonor charges. In case any cheque deposited by the Allottee with the Owners/Developer is returned dishonored, a sum of Rs.1,000/- plus GST/taxes as applicable shall be charged from the Allottee irrespective of the reason of such cheque dishonor and the Allottee agrees to pay such sum immediately on demand by the Owners/Developer.
Cheque dishonor charges. The Owner shall intimate the Allottee of the dishonour of the cheque and the Allottee would be required to promptly tender a Demand Draft of the outstanding amounts including interest at the Applicable Interest Rate from the due date till the date of receipt by the Owner of all the amounts including the dishonour charges of Rs. 1000/- (Rupees One Thousand only) (for each dishonour).