imprisonment in default of fine Section 138 NI
Case BriefsHigh Courts

In the present case, the petitioner was convicted in three separate cheque dishonour cases under Section 138 of the Negotiable Instruments Act arising from a single loan transaction and was sentenced to pay substantial fines, with three months’ simple imprisonment in default in each case.

Bombay High Court
Case BriefsHigh Courts

The Court referred to Jolly George Varghese v. Bank of Cochin, (1980) 2 SCC 360 quoting Justice V.R. Krishna Iyer that “to be poor, in this land of Daridranayan, is no crime, and to recover debts by the procedure of putting one in prison is too flagrantly violative of Article 21 unless there is proof of the minimal fairness of his wilful failure to pay in spite of his sufficient means”.