shortcomings which have been endeavoured to be plugged by the Negotiable Instruments (Amendment & Miscellaneous Provisions) Act, 2002 (55 of 2002). The Act 55 of 2002 has, besides other amendments, amended sections 138, 141 and 142 and inserted new sections 143 to 147 in the Act (section 143 - summary trial; section 144 - service of summons; section 145
evidence on affidavit; section 146 - Bank’s slip prima facie evidence;
section 147 - offences to be compoundable).
Section 138 reads as under:
‘Dishonour of cheque for insufficiency, etc., of funds in the account.
Where any cheque drawn by a person on an account maintained by
him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either
be paid from
standing to the credit of that account is the cheque or that it exceeds the amount that account by an agreement made with that
such person shall without prejudice
be deemed to have committed an to any other provision of this Act,
offence and be punished
with imprisonment for a fine which may extend both:
term which may extend to twice the amount of
to two years, the cheque,
Provided that nothing contained in this section shall apply unless-