In case of wrongful dishonor of a cheque by a banker having sufficient fund to the credit of the cus...........

Indian Contract Act (ICA)1872 indemnity and guarantee

In case of wrongful dishonor of a cheque by a banker having sufficient fund to the credit of the customer, the court may award

Ordinary damage

Nominal damage

Exemplary damage

Contemptuous damages

- Ordinary Damages: These compensate for actual loss suffered. They aim to restore the individual to the position they were in before the wrong.

- Nominal Damages: These are small sums awarded when a wrong has occurred, but no substantial harm was done.

- Exemplary Damages: Also known as punitive damages, these are awarded to punish the wrongdoer for egregious conduct and deter similar actions.

- Contemptuous Damages: These are awarded when the court feels the claim was technically right but undeserving of compensation.

In the case of wrongful dishonor of a cheque, courts often award Exemplary Damages to punish the bank and deter future misconduct.

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