Section 138 NI Act prosecution and defence, demand notice strategy, interim compensation under Section 143A, compounding and High Court revision.
Short, direct, on the record.
Under Section 138 of the NI Act, the punishment is imprisonment up to 2 years, or fine up to twice the cheque amount, or both. Additionally, the court can award interim compensation up to 20% of the cheque amount under Section 143A during the trial itself.
Yes. Under Section 141, every person who was in charge of and responsible for the conduct of the company at the time of the offence, as well as the company itself, can be prosecuted. The Supreme Court has held that mere designation as director is not sufficient; specific averments about the director being in charge of day to day business are required.
The complaint must be filed within 30 days from the date of cause of action (i.e., 30 days from the expiry of the 15 day notice period). If the drawer does not pay within 15 days of receiving the demand notice, the cause of action arises on the 16th day. Delay can be condoned if sufficient cause is shown.
Yes. Section 147 allows compounding (settlement) at any stage of the case with the permission of the court. If the full cheque amount with interest is paid, courts generally permit compounding. Settlement can also happen during appeal.
Share the cheque details, notice status and the prosecution or defence position for a preliminary assessment.