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Loop holes in The Negotiable

Instruments Act, 1881.

[1] Punishment provided for the Offence U/s. 138 of the

Act is not sufficiently provided. Maximum Punishment in

respect of Sentence and Fine is prescribed

But

Minimum Fine is not prescribed.

Minimum Fine/Compensation. should equivalent to the

amount of the Cheque which is Dishonoured.

[2] Section 138 is restricted to Dishonour of Cheque due

to Insufficient Fund or Exceeding the arrangement in the

Bank Account.

Dishonour of Cheque due to any reason ( Payment

Stopped By the Drawer, Account Closed, Account Attached,

Account Freezed etc.) required to be inserted in the act.

[3] In the Act there is a reference of a Cheque only. There

is no reference of Draft or Pay Order.

Therefore there is requirement of inserting a word,

Draft or Pay Order along with the Cheque.

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4] There is no Specific provision for Compensation.

[5] Section 144 – Mode of Service of Summons –

Service of Summons can be by Speed Post or by

Courier.

Service of the Summons should be permitted through

R.P.A.D. as in many part of India, Speed Post service is not

applicable.

As far as service by Courier is concerned, it is stated

in the Act that service of the Summons by Courier as are

approved by a Court of Sessions.

In reality, Sessions Court do not have such list of

approved Courier Agency

[6] Service of Summons should be permitted even by Email

or other Electronic Mode.

[7] Section – 145 – Evidence of Affidavit –

This section provides for filing of the evidence by the

Complainant in the Affidavit Form.

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Evidence of the Accused or his witness also should be

permitted in the form of Affidavit.

[8] Section 87 speaks about effect of Material Alteration in

the Instrument. It is also mentioned in the said provision in

the form of example that in the Promisory Note the Rate of

Interest is left blank and same is filled up later without the

consent of Drawer/Promisor it amounts to Material

Alteration and Instrument becomes invalid.

This is Contrary to the Section 20 of the Act which

empowers the Holder of the Instrument to fill the contents

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Loop holes in Cr. P. C.

Section 69 -

Summons to Witness by post is permissible

but not to the Accused.

Section 302 -

Permission for Prosectuion through Private

Advocate.

Section 319 -

Section 498 _a to be added.

Section 353 -

Judgement in the absence of the Accused.

Section 437 -

Provision for Cash Bail.

Section 468 -
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Provision for condonoation of delay like

Section 142 (b) of N.I. Act.