Application Under Section 145(2) of 138 N.I. Act

Section 138 of the Negotiable Instruments Act, 1881, addresses the issue of dishonour of cheques due to insufficient funds or other reasons, making it a criminal offence. In cases where a cheque is dishonoured, Section 138 provides a legal recourse to the payee, allowing them to file a complaint against the drawer of the dishonoured cheque.

However, in some situations, the payee may face difficulties in recovering the amount even after obtaining a favorable judgment under Section 138. This is where Section 145(2) of the Act becomes relevant.

Section 145(2) empowers the court to order the drawer of the dishonored cheque to deposit a certain amount with the court as a condition for granting bail or as a requirement for the case to proceed further. This provision serves as a safeguard to ensure that the drawer complies with the court’s order and pays the due amount.

The court may exercise this power to protect the interests of the payee and to prevent the drawer from evading their liability. It ensures that the drawer is compelled to deposit a portion of the cheque amount, which can later be awarded to the payee upon successful prosecution.

In essence, Section 145(2) provides a legal mechanism to secure the payee’s rights and helps maintain the integrity of the financial system by holding individuals accountable for their financial obligations as per the Negotiable Instruments Act, 1881.


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