LEGAL IMPLICATION OF DISHONOUR OF CHEQUE. ANALYSING JUDICIAL TRENDS AND LEGISLATIVE INTENT

AUTHOR – DHAIRYA MAMTORA, STUDENT AT UWSL, KARNAVATI UNIVERSITY

BEST CITATION – DHAIRYA MAMTORA, LEGAL IMPLICATION OF DISHONOUR OF CHEQUE. ANALYSING JUDICIAL TRENDS AND LEGISLATIVE INTENT, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (4) OF 2025, PG. 330-334, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

Negotiable Instrument Act, 1881 is an important legislation governing the transactions for the purpose of commercial dealing. The dishonour of Cheques is governed under The Negotiable Instrument Act 1881, which is generally used for the purpose of financial transactions and also has a significant impact on financial transactions. This paper analyses and trends and also focuses upon the intent of legislation behind the enactment of The Negotiable Instrument Act 1881. This act also governs the framework of Cheques in India. Section 138 of this act specifically in consonance with the dishonour of Cheques this section has gone under many amendments it has evolved with the passage of time which has enhanced and improvised the efficiency and effectiveness debt fraudulent practices and transactions, not only legislation but also judicial trends have a significant contribution in evolving section 138 of this act. The courts also emphasize the importance of essentials under section 138 of this act. This act signifies the importance of financial transactions in a right and proper manner, not only that, but also it has provided the punishment of criminal liability as well as civil liability depending upon case to case it also caters the liability in terms of imprisonment, fine, etc. This act does not hamper constitutionality, but also it is in consonance with The Constitution of India. The legislative intent behind the enactment of this law can be clearly observed through this act. Financial integrity is the priority under this act and not in consonance with the act will result in criminal punishment. There are many instances where section 138 of the act faced challenges, but in this evolving time, the enactment and laws should also be evolved for the purpose of consistency. The legislative implication of Cheque dishonor is having a significant outreach at the same time, there are some consequences faced and to which the amendments were developed. This provides trust in the legislature and the needs for the purpose of development in any of the statutes.