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.