JUDGMENT

M.N. Rao, J. - The provisions of Chapter XVII of the Negotiable Instruments Act, 1881 (for short "the Act") comprising Sections 138 to 142, concerning penalties in case or dishonour of certain cheques for insufficiency of funds in the accounts, inserted by Section 4 or the Banking, Public financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (Act 66 of 1988) are under challenge in this batch of writ petitions.

2. The statement of Objects and Reasons Act 66 of 1988 says: "in the course of administering various laws relating to banks and Public Financial Institutions, a need has arisen for some further amendments of the Act" Section 4 was enacted for achieving the following objective:

"to enhance the acceptability of cheques in settlement of liabilities by making the drawer liable for penalties in case of bouncing of cheques due to insufficiency of funds in the accounts or for the reason that it exceeds the arrangements made by the drawer, with adequate safeguards to prevent harassment of honest drawers".

Of the five sections comprising chapter XVII of the Act (inserted by Section 4 of Act 66 of 1988), Section 138 creates a statutory offence in the mat