Nowadays, the business is growing massively and for the development of the business rules and regulations are very significant, many aspects participated in the development of its growth. The cheque also has great importance in it. Hence when people started to use this method of payment or to promise to return the debt of any person it became usual to use outdated fraud cheques, and this resulted in the addition of the provision in the Negotiation Instrument Act 1881.
To settle the disputes related to the banking and cheques in the business. The jurist of the country realize the importance of the rules for the solution of the disputes where the sections state as follows-
This section of the act speaks about the dishonoring of the cheque. And try to provide legal punishment for the accused. In this statute, it states that when any drawer gives the cheque as a medium to pay his debt or as a payment option and the payee deposit it in the bank to withdraw it, then if it gets dishonored by the bank due to any either reason, the insufficiency of the money in the respective account or the amount or the cheque amount exceeds the limit of the amount of account. The act will become illegal and at this point, the payee can file a suit against such person which will be punishable with 2 years of imprisonment or the fine which will be just double the cheque amount or with both.
Leading judgment
In this case, the judge through his judgment explained the enactment of the act. The fact of the case was revolving around the dishonoring of the cheque where the notice was received by the defendant to return the amount, and after 15 days again it was issued by the court. Without having effected the court declared his judgment as per the provision of the Negotiation Instrument Act 1881. With the help of this judgment, the jurist laid down the objective of the act.
