What to Do When Receiving a Part Payment in a Cheque Dishonour Case
When a part payment is received and admitted by the complainant during a subsisting prosecution under Section 138 of the Negotiable Instruments Act, 1881 ("NI Act"), the legally enforceable debt stands proportionately reduced. Since the dishonoured cheque no longer represents the full outstanding liability, the complainant is obliged to formally document the part payment, appropriately modify the claim before the Court, and thereafter either prosecute the case for the remaining balance or arrive at a settlement