Just as a coin has its two different sides, the decriminalization of section 138 also has its own advantages and disadvantages. On the one hand, where it is easy to do business, on the other hand, creditors will lose confidence in the system. (d) In mediation, the court reaches a settlement between the parties and applies the prescribed procedure. (c) by publication in a daily newspaper in Bangla with a large circulation.] (a) For arbitration or conciliation, the provisions of the Arbitration and Conciliation Act 1996 shall apply as if the arbitration or conciliation had been submitted for settlement in accordance with the provisions of this Act. It is important to analyze the different methods used by different countries in check-bounce cases. The evolution of case law in five countries is as follows: The Nadable Instruments (Amendment) Act 2018, which was passed on 1. September 2018, allows the court hearing an NSF cheque offence to order the drawer to pay the complainant interim compensation not exceeding 20% of the amount of the cheque within 60 days of the trial court`s order to pay such compensation. This provisional indemnity may be paid either in summary proceedings or in summons if the subscriber pleads not guilty; or when determining the charge in another case. In addition, the amendment also empowers the Court of Appeal, which decides appeals against a conviction under Article 138, to order the complainant to pay at least 20% of the fine/compensation imposed in addition to the interim compensation. (b) the payee, or the holder of the cheque, requests payment of the said sum of money in due time by written notice to the subscriber of the cheque within fifteen days of receipt of the bank`s information that the cheque has been returned as unpaid, and In Golden Menthol Export Pvt.
Ltd. v. Sheba Wheels (P) Ltd., The Guwahati High Court held that criminal proceedings under Section 138 of the NI Act were not an alternative to a civil action for redemption of money against non-cashing of the cheque may be considered. Also the conviction according to § 138 NI. The law never exempts the subscriber to the cheque from his civil liability. 2. Dayawati v. Yogesh Kumar Gosain 2017 SCC Online Del 11032. 18.2. The main purpose of the provision is to ensure compensation, with the penalty element being used primarily to enforce the compensatory element, composition being encouraged at the initial stage but not excluded at a later stage, subject to adequate compensation acceptable to the parties or the Court. 8. Judgment in summary cases: In any summary case in which the accused pleads not guilty, the judge shall record the contents of the evidence and a verdict containing a brief statement of reasons for the finding.
6. Order for compensation: (1) If a court imposes a fine or penalty (including the death penalty) that includes a fine, it may, when passing judgment, order the collection of all or part of the fine. The quasi-criminal nature of section 138 of the IRB Act can be better understood in two ways. One is the inclusion of imprisonment of up to two years and a fine, which can be up to twice the amount of the cheque, and the second adoption of the Code of Criminal Procedure in the handling of such cases. 9[(2) Where a fine is imposed under subsection 1, any amount up to the face value of the cheque, to the extent that it is covered by the fine paid, shall be paid to the holder. The beneficiary may redeposit the cheque during its validity (within 3 months from the date of issue) or take legal action. The beneficiary shall inform the subscriber in writing if he decides to grant him sufficient time to repay the legal amount. (c) where a person is convicted of an offence for causing the death of another person or facilitating the commission of such an offence by paying compensation to persons entitled to compensation under the Fatal Accidents Act 1855 (13 of 1855) from the convicted person for damage caused to him by that death; (a) by delivery to the person on whom it is to be served; or “What happens if the complainant denies aggravating the offence under Article 147 of the IRB Act or withdraws his complaint under Article 257 of the Code of Criminal Procedure?” The answer can be found in a Supreme Court decision in `M/S.
Meters and Instruments Pvt. Ltd. & ANR. v. Kanchan Mehta` [Criminal Appeal No. 1731 of 2017]. The Honourable Supreme Court has determined that if the court is satisfied that the plaintiff has been properly compensated and that it is in the interests of justice, it may, at its discretion, terminate the proceedings and exonerate the defendant even without consent. If a check is not cashed under Section 138 of the NI Act of the Trade Securities Act, such notice is served on the defaulting debtor by a notice from the unpaid creditor (beneficiary) through an attorney. Recently, in P Mohanraj v. Shah Brothers, the intriguing remark to a bench of judges RF Nariman, Navin Sinha and KM Joseph in deciding whether the IBC Article 14 moratorium excludes section 138 prosecutions against corporate borrowers, that section 138 proceedings can be described as “civilian sheep” in “criminal wolf clothing”.
Shri Lekhi, an additional attorney general, argued that Section 138 proceedings could only be described as “criminal proceedings” and not “quasi-criminal proceedings.” The court rejected the request, calling it a “misnomer.” The Chamber sought to determine the true nature of the procedure under section 138 of the Negotiable Instruments Act 1881. The following remarks were made by the court in determining the nature of Section 138 of the NI ACT. In the case of “MSR Leathers v. S. Palaniappan” it was established that the beneficiary may present a cheque for cashing several times before the expiry of a period of 3 months from the date of its issue or within the scope of its validity, whichever is earlier. Cheque No. — dated ——for an amount of — drawn at the ———— branch was issued by you in lieu of payment of your financial obligations to us. Recently, in Kumaran v. State of Kerala, 2017 [7 SCC 471], the Court held that although the convicted person has always been sentenced in absentia, compensation may be recovered in the manner set out in subsection 421(1). However, it would not be necessary to establish any particular reasons. Get on board and experience ease and convenience! If the court has made an order for compensation, recovery of compensation should be pursued.
In Vijayan v. Sadanandan K, the court held that the provisions of Article 357(3) and Article 431 StPO in conjunction with Article 64 of the IPC empower the court to impose a default penalty for non-payment of compensation when issuing an order for payment. The penal provisions contained in sections 138 to 142 of the Act were enacted to ensure compliance with the obligations contracted by issuing cheques as deferral of payment. Section 138 of the Act governs the circumstances in which a complaint of non-cashing of cheques is filed.1 The ingredients required to comply with section 138 are: “Non-cashing of cheque due to insufficient funds in account, etc. – When a cheque If the section were decriminalized, there would be an increased risk of fraud and fraud. On the one hand, this court has cases pending and decriminalization would help reduce the piles of cases that are before the courts, but on the other hand, a risk in the company increases and the credibility of the control system will decrease. Fear of jail and lawsuits, as well as fines, were the main factors in paying checks on time. If the penalty is lifted by the decriminalization of section 138, creditors will certainly have to take a high risk. As in India, the United States provides for the imposition of civil and criminal liability. The fine can be up to double or triple the amount of the cheque issued. Section 138 of the Negotiable Instruments Act 1881 provides: (a) to cover costs incurred in criminal proceedings; Decriminalization is not the only option left for doing business. Therefore, it is not a good idea to decriminalize this section, as the main intention of including it was to increase creditor confidence and increase the credibility of the cheque system.