Section 138 Of The Negotiable Instruments Act, 1881: Addressing The Surge In Corporate Fraud Cases And The Future Of The Act
Advocate Sagar Modi, Legal Associate, C. N. Modi Advocate & Associates
Advocate C. N. Modi, C. N. Modi Advocate & Associates
Introduction:
The Negotiable Instruments Act, 1881 is a pivotal law in India that governs the use of negotiable instruments such as cheques, promissory notes, and bills of exchange. As a specialist lawyer in cases related to this Act, I understand the growing concerns surrounding the increase in fraud cases in corporate fields, particularly under Section 138 of the Act. This Section deals with the dishonour of cheques due to insufficient funds in the drawer's account. In recent years, there has been a noticeable surge in the number of cases filed under this section. The significant number of pending cases related to Section 138 of the NI Act is indeed a matter of concern. With 3.3 million cases awaiting resolution in various courts throughout India, it forms a substantial portion of the total 23.6 million criminal cases pending, as reported by the National Crime Records Bureau. This article aims to provide a comprehensive understanding of the reasons behind this surge, the actions taken by the courts and legal system, and the future of the Act.
