Signature mismatch on cheques to invite penalty

NEW DELHI: Cheque-bouncing charges will be slapped even if the cheque is dishonoured on the ground that signatures on the cheque did not match the specimen signatures with the bank, the Supreme Court has said.

A two-judge bench, comprising Justices TS Thakur Gyan and Sudha Mishra, overturned a Gujarat High Court judgement, which had ruled to the contrary.

The HC had held that a person can be prosecuted only in two cases, if there was insufficient money in the account or the amount exceeded the arrangement with the bank, but would not apply where the cheque bounced because of a signature mismatch.