Vol. 2, Issue 6 (2016)
Dishonour of cheque: An overview
Author(s): Pushpanjali Sood
Abstract: The present day economies of the world which are functioning beyond the international boundaries are relying to a very great extent on the mechanism of the negotiable instruments such as cheques and bank drafts and also the oriental bill of exchange prevalent in India, known as ‘hundis’. Since cheque plays an important role in business transaction, dishonour of cheque threatens the credibility in transacting business through cheque. Thus, the object of bringing section 138 on statute appears to be, to inculcate faith in the efficacy of banking operations and credibility in transacting business on Negotiable Instruments.