NI Act: Fine Equal to Cheque Amount + 6% Interest Ensures Uniformity: P&H HC

NI Act: Fine Equal to Cheque Amount + 6% Interest Ensures Uniformity: P&H HC

In cheque bounce cases under the NI Act, the High Court of Punjab & Haryana insisted on standardization. Generally, the penalty must equal the cheque amount, and carry at least 6 percent interest compounded annually from date of dishonor until judgment is entered. Before imposing fines, the law requires magistrates to take into account interim compensation paid under Section 143A or the amounts received by the accused during trial. Imprisonment is at a magistrate's discretion, the court added, recommending the minimum sentence unless the conduct of the accused demands otherwise. It also suggested that attention be paid on Section 138 to promoting a compensatory objective, to ensure that any measures taken as remedy should reflect its legislative intent with this payee-protecting provision.

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