Is 138 A Criminal Case?
Sections 138 to 142 of the Negotiable Instruments (NI) Act were introduced by The Banking, Public Financial Institutions, and Negotiable Instruments Laws (Amendment) Act, 1988. However, it was discovered that the method offered was onerous and the punishment was insufficient. As a result, the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 was amended further to, among other things, increase the period of imprisonment imposed under Section 138 of the Negotiable Instruments Act. Section 138 of the NI Act was enacted to instill trust in the efficacy of banking operations and credibility in the business of negotiable instruments. The legislature's goal is evident from the foregoing. Though largely a civil wrong, cheque dishonor has been given a criminal hue by the introduction of a sentence of imprisonment for cheque dishonor. Nature of Offence: The offense under Section 138 of the NI Act is not fully criminal because it is not listed in th...