Cheque dishonour litigation under Section 138 of the Negotiable Instruments Act continues to dominate criminal dockets.
- Procedural Rigour
Courts have emphasised strict compliance with statutory requirements, including issuance of legal notice and adherence to limitation periods.
- Presumptions and Defence
The statutory presumption in favour of the holder shifts the evidentiary burden onto the accused, making defence strategy critical.
III. Settlement Trends
Given the quasi-criminal nature of proceedings, courts increasingly encourage settlement and compounding.
- Strategic Drafting
The strength of a Section 138 case often lies in the quality of documentation and drafting at the pre-litigation stage.
- Conclusion
Effective litigation strategy in cheque dishonour cases requires precision, timing, and evidentiary discipline.