A Story on Cheque Dishonour

A Story on Cheque Dishonour

S.138 of NI Act deals with discharge of debt or any other liability. This section provides when cheque is returned unpaid. S.138 creates an offence. One has to present cheque in maximum 6 months ; one has to give written notice within 30 days ; drawer of cheque fails to pay amount in 15 days of receipt of notice. Then comes presumption ; S.139 creates presumption regarding receipt of cheque for discharge of debt / other liability. S.140 reduces the option of raising certain defences by accused. S.142 explains process ; complaint should be filed before Court by payee or holder in due course and it is to be done in 30 days. S.143 gives power to Magistrate to do summary trial when less than 1 years' sentence is to be given. S.143A gives power to Magistrate to award interim compensation to complainant even before convicting accused which has to be recovered as per fine under S.321 of Code of Criminal Procedure, 1973.