Provisions of Section 138 of Negotiable Instruments Act are not ultra vires the Constitution.

JUDGMENT

J.C. Misra, J. - The basic prayer in both these writ petitions cover the constitutional validity of Section 138 of the Negotiable Instrument Act (for short. N.I. Act). The petitioners in these two matters have been prosecuted for an offence under Section 138 of the N.I Act as the cheques they had issued to pay up their debts had bounced for lack of proper fund in the respective accounts. The provision under the aforesaid section have been challenged as violative of Articles 14, 19, 20 and 21 of the Constitution of India hence a prayer was made to declare the provisions ultra vires of the Constitution and to further quash the criminal proceedings initiated under that section against the petitioners.

2. The case against Ramawati Sharma was filed by Rahul Malayiya in complaint no. 5376 of 1995 and the gist of the complaint case is that the accused had taken a loan from the complainant and with a view to repay the same she had issued a cheque dated 10-4-1995.

The cheque was drawn on through Allahabad Bank at Delhi and it was deposited in Indian Overseas Bank. Allahabad.