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Nature of Offence under Section 138 of NI Act is Quasi Criminal
Section 138 of the Negotiable Instruments Act, 1881 (NI Act) provides for the punishment of a person who issues a cheque which is dishonoured due to insufficient funds in his bank account or for any other reason. The section also provides for the procedure to be followed in such cases.
The nature of the offence under Section 138 of the NI Act is quasi-criminal in nature. This means that while it is not a purely criminal offence, it has some features of a criminal offence.
The offence under Section 138 of the NI Act is not a purely criminal offence because it is not included in the Indian Penal Code (IPC), which is the primary criminal law in India. Instead, it is a special provision under the NI Act, which deals with negotiable instruments such as cheques, bills of exchange, and promissory notes.
However, the offence under Section 138 of the NI Act has some features of a criminal offence. For example, it requires the mens rea or the intention to commit the offence. The dishonour of a cheque alone is not enough to establish the offence; there must be a deliberate intention on the part of the person who issued the cheque to cheat the other party.
In addition, the punishment for the offence under Section 138 of the NI Act is similar to that of a criminal offence. The punishment includes imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, or both.
The procedure for the trial of offences under Section 138 of the NI Act is also similar to that of a criminal offence. The procedure includes the filing of a complaint by the aggrieved party, the issuance of a summons to the accused, and the holding of a trial.
Another feature of the offence under Section 138 of the NI Act which makes it quasi-criminal in nature is that it is a compoundable offence. This means that the parties can come to a settlement and the complainant can withdraw the case, subject to certain conditions.
In conclusion, the nature of the offence under Section 138 of the NI Act is quasi-criminal in nature. While it is not a purely criminal offence, it has some features of a criminal offence, such as the mens rea requirement and the similar punishment and procedure for trial. This unique nature of the offence makes it important to understand the legal implications of issuing a cheque that bounces due to insufficient funds or for any other reason.
