The Negotiable Instruments Act, 1881 was enacted to define and ...

Law to penalize cheque dishonor & maintain faith in banking operations.

Case Laws Indian Laws

October 18, 2024

The Negotiable Instruments Act, 1881 was enacted to define and amend laws relating to promissory notes, bills of exchange, and cheques. Section 138, introduced through the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988, provides penalties for dishonor of cheques due to insufficient funds. Subsequent amendments aimed to expedite cases through summary trials and make offenses compoundable. The Supreme Court highlighted the objective of instilling faith in banking operations and preventing dishonesty in drawing cheques without sufficient funds. The Bengal Money Lenders Act, 1940 and Chapter XVII of the Negotiable Instruments Act operate independently with distinct objectives. There is no conflict between provisions, and civil remedies for unlicensed money lenders are not barred by criminal penalties u/s 138. The High Court dismissed the revision application, finding no merit in claims of abuse of process.

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The Negotiable Instruments Act, 1881 was enacted to define and ...

Law to penalize cheque dishonor & maintain faith in banking operations.

Case Laws Indian Laws

October 18, 2024

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