Tag: cheque bounce

Current Legal Update

S.138 NI Act Compounding Costs Not Mandated by Damodar Prabhu Judgment Says Supreme Court

In India, millions of court cases are associated with one thing, namely bounced cheques. Section 138 of the Negotiable Instruments Act (NI Act) deals with this. Simply stated, it is a criminal act to write a cheque that is disgraced by the bank because of lack of funds. The law was established so as to establish confidence in business transactions and to ensure that a cheque would be considered a promise with serious allegations to pay.

byHimanshu Poshwal
Supreme Court

Supreme Court Grants Relief in 1999 Cheque Bounce Case Citing Possible Mistaken Identity

The Supreme Court is considering an appeal made by C.K. Abdurahiman, who alleges he was incorrectly identified in a 1999 cheque bounce case. Even after maintaining he had nothing to do with the transaction, he was convicted under Section 138 of the Negotiable Instruments Act. The Court granted interim relief on grounds of misidentification and underlining the significance of due process and the presumption of innocence. The case emphasizes the importance of protection against wrongful convictions in economic crimes.

byJigeesha Vaishnav