What does “NI” mean?
“NI” stands for Negotiable Instruments. A negotiable instrument is a written instrument of a kind recognised by law that supports the transfer of rights to receive payment, subject to the applicable statutory rules.
What instruments does the Act cover?
The Act defines promissory notes, bills of exchange and cheques. A cheque is a bill of exchange drawn on a specified banker and payable on demand, within the statutory definition.
Why is Section 138 important?
Section 138 creates a specific offence where a cheque is returned unpaid for a reason covered by the section and the statutory conditions—including a timely written demand notice and failure to pay within the prescribed period—are fulfilled.
Does every dishonoured cheque result in a criminal case?
No. The statutory ingredients must be established. The nature of the underlying liability, cheque presentation, bank return, notice, service and limitation may all matter. A civil recovery remedy may also be relevant, depending on the facts.
Who should read this Act?
Payees, drawers, business owners, lenders, accountants, advocates and anyone dealing with cheques should understand the basic definitions, presumptions, notice requirements, limitation rules and court procedure.
Read the statutory text alongside case law. This overview is educational and is not a substitute for advice on a particular transaction.
PROFESSIONAL INFORMATION
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