Delay condone "NI ACT"

Section 138 of Negotiable Instrument Act : Dishonour of Cheque for insufficient funds in account.

In a simple language it can be said that When an cheque was issued in favour of a person and such cheque was dishonoured in general language if such cheque was bounced the person is liable to be punished under this section to undergo for imprisonment for a term  which may extended to 2 years or with fine which may extend to twice amount of the cheque.

The basic requirement to prosecute a person under Section 138 of NI Act are :

  1. The Cheque shall be issued regarding to Legally enforceable debt.
  2. The Cheque shall be presented within 3 months from the date of issue before the bank.
  3. After receipt of Cheque Dishonoured memo from bank the notice shall be issued to the accused within one month after receipt of such memo.

4. After receipt of such notice if the Accused failed to discharge the Cheque bounce amount within 15 days, on 16th day the complaint shall be lodged before the Magistrate having Jurisdiction.

This Article is about what if  the complainant is failed to file a complaint under section 138 of NI ACT before the court of law within prescribed time whether he have any option to secure his interest.

" The answer is yes the complainant is having remedy under Section 142(b) of NI Act, but the Complainant shall satisfy the Court that he had sufficient cause for not making a complaint within such period." 
At the end of the day it is the discretion of the Concerned Magistrate to allow the Complainant or not.

Article by,
Narukulla Srinivasa Deepak,
Advocate, LLB.