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 one year’s simple imprisonment and compensation equivalent to the cheque amount, and additionally directed payment of 9% interest. The Sessions Court upheld the conviction, sentence, and compensation.
Before the High Court, the central issue...
