IMPORTANT POINTS AND IMPORTANT STAGES IN NUTSHELL :
Governing Law on Cheque Bounce Cases:
Governing Substantive Law:
- The Object of N.I Act is to create an atmosphere of faith and reliance in the banking system.
- Negotiable Instrument Act,1881[Special Law–Central Act]- Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988.
- Sections 138 to 142, Chapter XVII, was inserted in the Negotiable Instruments Act, 1881 by an Amending Act, Act 66 of 1988. These sections came into force w.e.f. 29.3.1989[amended after Dr Rajamannar report]
- Negotiable Instruments[Amendment and Miscellaneous Provisions Act, 2002] in short the Act. No 55 of 2002 , Lay down a kind of complete Code for trial of offences under the Negotiable Instruments Act, Whereby additional powers have been conferred upon the court to take cognizance even after expiry of the period of limitation by conferring on it a discretion to waive the period of one month.
- Section 143 gave to the court the power to try cases summarily; Section 144 provided for the mode of service of summons;
- Section 146 provided that the bank's slip would be prima facie evidence of certain facts.
- Section 147 made the offences under the Act compoundable.
- Punishment extended up to two years after the second amendment with effect from February 6, 2003:FINE upto twice the amount of cheque.
