P&H: Dishonour of Cheque Quashes Payment of Interest Component The Punjab and Haryana High Court has set aside the interest component imposed on compensation in a cheque bounce case under Section 138 of the Negotiable Instruments Act (NIA), and reduced the convict’s sentence to the period already undergone. The case arose from a cheque of Rs 5 lakh issued by the petitioner which was dishonoured. The trial court convicted him under Section 138 NIA, awarding
P&H: Dishonour of Cheque Quashes Payment of Interest Component
punjab-haryana
⚖️ Order Date:
19 May 2026
Headnotes
Negotiable Instruments Act, 1881, Section 138 — Sentencing power — Interest on compensation — Section 138 prescribes imprisonment up to two years or fine up to twice the cheque amount or both and contains no provision for imposing interest on compensation - Direction to pay interest is quashed. (Para 7)
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punjab haryana
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