In the realm of legal procedures, an application for an interim of 20% in a case under Section 138 of the Negotiable Instruments Act holds significant importance. Section 138 of the Negotiable Instruments Act deals with dishonor of a cheque for insufficiency of funds or if it exceeds the amount arranged to be paid by the drawer’s account.
When a complaint is filed under Section 138, it often takes time for the final adjudication of the case. During this time, the complainant might face financial hardship, especially if the dishonored cheque was meant for a substantial amount. To address this concern, the law allows the complainant to seek an interim order from the court, requesting the accused (drawer of the bounced cheque) to pay a percentage of the cheque amount as an interim relief. This interim relief is typically set at 20% of the cheque amount.
The purpose of granting an interim relief of 20% is to provide some financial respite to the complainant while the case is pending. It ensures that the complainant does not endure undue financial burden due to the bounced cheque. The court, in its discretion, may grant or deny such an interim relief after considering various factors, including the merits of the case and the financial circumstances of both parties.
Applying for an interim of 20% in a case under Section 138 of the Negotiable Instruments Act is a legal recourse available to the complainant, ensuring that justice is served without causing undue financial distress during the course of legal proceedings. It strikes a balance between protecting the interests of both parties involved in the case.