NIA 138

Object of

Relates to a civil wrong

Negotiable Instruments Act, 1881 - Section 138 - Object of - Appears to be to enhance the acceptability of cheques in the settlement of liabilities - The drawer of the cheque be held liable to prosecution on dishonour of cheque with safeguards provided to prevent harassment of honest drawers - Section 138 primarily relates to a civil wrong and the amendment made in the year 2000 specifically made it compoundable.

2021 SCeJ 293 SUMETI VIJ v. PARAMOUNT TECH FAB INDUSTRIES