LAW RELATING TO DISHONOUR OF CHEQUES IN INDIA

LAW RELATING TO DISHONOUR OF CHEQUES INInstruments laws (amendment) Act, which came into
INDIAforce from 01-04-1989. The introduction of Chapter
INTRODUCTION:XVII i.e., sections 138 to 142 of the Negotiable
The Negotiable Instruments Act, 1881 is an Act toInstruments Act, for the prosecutions relating to the
define the law relating to promissory notes, bills ofoffences of dishonour of cheques.
exchange and cheques. This Act has been amendedThe dishonour of cheques became popular and
several times commencing from 1885 till 2002. Thefrequent in courts of law and the law relating to the
most important amendment is by Act 66 of 1988same developed in such a rapid pace covering almost
and by virtue of chapter XVII was introduced by theseveral aspects which may arise in the day to day
Banking, Public Financial Institutions and Negotiabledisposal of such cases by the courts.