<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xsl" href="https://www.taxtmi.com/rss_sitemap/rss_feed_blog.xsl?v=1750492856"?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
  <channel>
    <title>Default imprisonment for cheque dishonour compensation held subject to statutory limits and Article 21 proportionality</title>
    <link>https://www.taxtmi.com/highlights?id=99565</link>
    <description>Default imprisonment for non-payment of compensation under the Negotiable Instruments Act was treated as subject to the same statutory ceiling that applies to default imprisonment for fine, so a twelve-month default term in each complaint was illegal where the offence under Section 138 carried a maximum two-year sentence. The court also stated that default sentences for non-payment of fine or compensation cannot run concurrently. However, imposing aggregate default imprisonment far exceeding the substantive sentence solely because compensation remained unpaid was found disproportionate and inconsistent with Article 21. The default term was reduced to the period already undergone, while compensation liability was left recoverable.</description>
    <language>en-us</language>
    <pubDate>Fri, 08 May 2026 07:30:04 +0530</pubDate>
    <lastBuildDate>Fri, 08 May 2026 07:30:05 +0530</lastBuildDate>
    <generator>TaxTMI RSS Generator</generator>
    <atom:link href="https://www.taxtmi.com/rss_feed_blog?id=900490" rel="self" type="application/rss+xml"/>
    <item>
      <title>Default imprisonment for cheque dishonour compensation held subject to statutory limits and Article 21 proportionality</title>
      <link>https://www.taxtmi.com/highlights?id=99565</link>
      <description>Default imprisonment for non-payment of compensation under the Negotiable Instruments Act was treated as subject to the same statutory ceiling that applies to default imprisonment for fine, so a twelve-month default term in each complaint was illegal where the offence under Section 138 carried a maximum two-year sentence. The court also stated that default sentences for non-payment of fine or compensation cannot run concurrently. However, imposing aggregate default imprisonment far exceeding the substantive sentence solely because compensation remained unpaid was found disproportionate and inconsistent with Article 21. The default term was reduced to the period already undergone, while compensation liability was left recoverable.</description>
      <category>Highlights</category>
      <law>Indian Laws</law>
      <pubDate>Fri, 08 May 2026 07:30:04 +0530</pubDate>
      <guid isPermaLink="true">https://www.taxtmi.com/highlights?id=99565</guid>
    </item>
  </channel>
</rss>