23 May 2026 06:37 AM
Punjab & Haryana High Court
Punjab & Haryana High Court

Dishonour of Cheque -- Non-Payment of Fine --Imprisonment Must Be Proportionate to Amount Unpaid

In cheque dishonour cases under Section 138 of the Negotiable Instruments Act, the period of imprisonment imposed for non-payment of fine or compensation must be proportionate to the amount unpaid and consistent with sentences imposed on similarly placed convicts. The cost of liberty must be proportionate. Courts, as primary guardians of fundamental rights under Article 14 of the Constitution, must ensure that incarceration for monetary default does not result in disproportionate deprivation of freedom.

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