138A IPC: Application to Indian Marine Service – Explained

1. Code

Section 138A of the Indian Penal Code (IPC) deals with the dishonor of cheques drawn on a bank in India.

2. Explanation

This section is applicable to the Indian Marine Service, meaning that it applies to cheques drawn on bank accounts held by individuals or entities engaged in maritime activities.

Specifically, Section 138A is relevant when:

• A cheque drawn on a bank account in India is presented for payment.
• The cheque is dishonored due to insufficient funds or other reasons.
• The cheque was issued by an individual or entity engaged in the Indian Marine Service.

3. Illustration

Consider a situation where a ship owner in India issues a cheque to a supplier of marine equipment. The supplier presents the cheque for payment, but it is dishonored due to insufficient funds in the ship owner’s bank account. In this case, Section 138A of the IPC applies, and the supplier can take legal action against the ship owner for the unpaid amount.

4. Common Questions and Answers

Q: Does Section 138A apply to cheques drawn on foreign banks?

A: No, Section 138A is applicable only to cheques drawn on banks within India.

Q: What are the consequences of dishonoring a cheque under Section 138A?

A: The person who issued the cheque can be punished with imprisonment for up to two years, a fine, or both. The court may also direct the person to pay the amount mentioned in the cheque along with compensation to the payee.