Q: Discuss important provisions of dishonour of cheque under negotiable instrument act, 1881 ?

Ans: Section 139 sets the presumption in favour of the drawee that the cheque received by him is for the discharge of any debt or liability of the drawer. This discharge of debt can be in whole or in parts. Here, the court shall presume that drawer has taken any debt from the drawer. 

Section 140 states that the drawer cannot take this defence of not knowing that the cheque may be dishonoured on presentation. 

The procedure for taking cognizance of an offence under Section 138 is present in Section 142. Whereas, Section 147 makes the offences under the Act compoundable. 

Section 143 of negotiable instrument act deals with the trial of cases under Section 138 which is summary proceedings notwithstanding anything contained in the Criminal Procedure Code, 1973 (CrPC). 

Section 143 was added by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002. Section 143(3) specifically mentions that efforts must be taken to complete the trial proceedings within six months from the date of filing the complaint by the drawee. 



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