Negotiable Instruments Act, 1881, Section 138

Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—The courts should, unless there are special circumstances, in all cases of conviction, uniformly exercise the power to levy fine upto twice the cheque amount (keeping in view the cheque amount and the simple interest thereon at 9% per annum as the reasonable quantum of loss) and direct payment of such amount as compensation—Direction to pay compensation by way of restitution in regard to the loss on account of dishonour of the cheque should be practical and realistic, which would mean not only the payment of the cheque amount but interest thereon at a reasonable rate.


Pay Rs.100/- and get full text of the judgment on the above stated point. Judgment will be sent to you by email only after receipt of full payment in our account.*
File Name:- SC_NOVEMBER 2011_5

*Terms and Conditions applicable