Section 138 Punishment

The person who commits the above offence is liable to be punished with imprisonment for a term which may be extended to two years or with fine which may extend to twice the amount of the cheque or with both.

Section 138 punishment. Section 138 of negotiable instruments act explained in details with case law for better understanding of a common man. 1 if the person committing an offence under section 138 is a company every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Introduction in 1988 the negotiable instruments act 1881 was amended and section 138 was inserted making the bouncing of cheques a punishable offence amounting to a punishment of imprisonment of a term extendable to 2 years or with fine extendable to double the amount of the cheque or both.

Section 138 in the negotiable instruments act 1881. For proper opinion you have to share the copy of that order whereby punishment has been given by the court. Section 138 cheque bounce punishment are mentioned under the negotiable instrument act 1881 ni act.

Section 138 of the negotiable instruments act 1881 specifically deals with the offence of a returning of the cheque by the bank where the cheque is drawn by the person having an account in such bank had drawn the said cheque for the discharge of his legally payable debt or liability. Though it is a summary suit of criminal nature even the procedure of crpc has to be adopted for evidence and cross examination of witnesses. In the negotiable instruments act 1881 if any person is deemed to have committed an offence under section 138 then he she will be punished with imprisonment for a term that can extend up to 2 years or with fine which can be twice the amount of the cheque or both.

Apart from civil liability criminal liability is sought to be imposed by the said provision on such unscrupulous drawers of cheques. Section 138 was enacted to punish unscrupulous drawers of cheques who though purport to discharge their liability by issuing cheque have no intention of really doing so. Section 138 of negotiable instruments act is an important provision pertaining to the matter of cheque bouncing.

The order itself contain the factum of the matter. Answers 3 under section 138 of n i. 18 138 dishonour of cheque for insufficiency etc of funds in the account.

The section reads as under. Act provisions are for double of amount of cheque or one year imprisonment or both.