Case Law Analysis
|Bombay High Court
Section 138 NI Act | Default Sentence Capped at One-Fourth of Maximum Punishment; Consecutive Default Terms Must Reflect Time Served : Bombay HC
Bombay High Court rules that default sentences for dishonoured cheques under Section 138 NI Act cannot exceed six months per complaint and must be set off against time already served, ensuring proportionality under Article 21. The judgment mandates that total default imprisonment across multiple complaints must not exceed one-fourth of the maximum punishment, impacting sentencing in financial offence cases.