Saturday, 25 May 2024

PART- PAYMENT OF CHEQUE AMOUNT- 138 NI MATTER NOT MAINTAINABLE



PART- PAYMENT OF CHEQUE AMOUNT- 138 NI MATTER NOT MAINTAINABLE 

When part payment is made after the cheque is drawn, the payee has the option of either taking a new cheque for the reduced amount or by making an endorsement on the cheque acknowledging that a part payment was made.

Thus, when a part- payment of the debt is made after the cheque was drawn but before the cheque is encashed, such payment must be endorsed on the cheque under Section 56 of the Act. 

The cheque cannot be presented for encashment without recording the part payment. 

If the unendorsed cheque is dishonoured on presentation, the offence under Section 138 would not be attracted since the cheque does not represent a legally enforceable debt at the time of encashment.


    (Shyam Panchmukh is Advocate, Activist  
     & Writer in Mumbai. Queries may be     
     WhatsApp Msg @8080751998)

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