No Offence Under Section 138 NI Act If Cheque Is Presented For Full Amount Without Endorsing Part Payment Made By Borrower : Supreme Court
2 years, 5 months ago

No Offence Under Section 138 NI Act If Cheque Is Presented For Full Amount Without Endorsing Part Payment Made By Borrower : Supreme Court

Live Law  

In a significant judgment, the Supreme Court on Tuesday held that no offence for dishonour of cheque under Section 138 of the Negotiable Instruments Act is made out if the cheque is presented for the full amount without endorsing the part-payment made by the borrower after the issuance of the cheque.The Court held that the sum reflected on the cheque will not be the "legally enforceable debt". In a significant judgment, the Supreme Court on Tuesday held that no offence for dishonour of cheque under Section 138 of the Negotiable Instruments Act is made out if the cheque is presented for the full amount without endorsing the part-payment made by the borrower after the issuance of the cheque. The Court held that the sum reflected on the cheque will not be the "legally enforceable debt" as per Section 138 NI Act, when it has been presented for encashment without endorsing the part-payment. Negotiable Instruments Act, 1881 ; Section 138 - For the commission of an offence under Section 138, the cheque that is dishonoured must represent a legally enforceable debt on the date of maturity or presentation - If the drawer of the cheque pays a part or whole of the sum between the period when the cheque is drawn and when it is encashed upon maturity, then the legally enforceable debt on the date of maturity would not be the sum represented on the cheque - When a part or whole of the sum represented on the cheque is paid by the drawer of the cheque, it must be endorsed on the cheque as prescribed in Section 56 of the Act.

Supreme Court Court Negotiable Instruments Act Debt Payment Act Para Sum Presented Offence 138 Section 138 Cheque Section 138 Ni Act Legally Ni Act Part Payment Section 56 Maturity No Offence Full Amount Enforceable 20 Lakhs  borrower  138  sum  enforceable  offence  payment  supreme  legally  ni  endorsing  debt  court  maturity  act  cheque  presented

History of this topic

No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court
3 days, 22 hours ago

No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court

Live Law  

The Supreme Court held that if the cause of action for the offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 has arisen after the declaration of moratorium with respect to the company as per the Insolvency & Bankruptcy Code, 2016, then the proceedings under S.138 NI Act cannot be continued against the ex-director of the …

S. 138 NI Act | Cheque Bounce Case Not Maintainable If Complainant Is Party To Illegal Transaction: Orissa High Court
Trending News
4 days, 12 hours ago

S. 138 NI Act | Cheque Bounce Case Not Maintainable If Complainant Is Party To Illegal Transaction: Orissa High Court

Live Law  

In an important decision, the Orissa High Court has held that a complainant cannot maintain a case for cheque bounce against the accused under Section 138 of the Negotiable Instruments Act, 1881 if she herself is a party to illegal transaction, or in other words, if initially credit was given by the complainant for achieving an illegal purpose. Roy, Virender …

NI Act | Single Complaint For Dishonour Of More Than Three Cheques Maintainable If Covered By Consolidated Demand Notice: J&K High Court
1 week, 2 days ago

NI Act | Single Complaint For Dishonour Of More Than Three Cheques Maintainable If Covered By Consolidated Demand Notice: J&K High Court

Live Law  

Clarifying the legal position under the Negotiable Instruments Act, 1881, the High Court of Jammu and Kashmir and Ladakh has held that mere issuance or dishonour of a cheque does not give rise to a cause of action under Section 138 of the Act. While dismissing a petition challenging a complaint under the NI Act Justice Sanjay Dhar observed that …

NI Act | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court
1 week, 2 days ago

NI Act | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court has said that, to maintain uniformity in imposing fines in cheque bounce cases under the Negotiable Instruments Act, the fine should be equivalent to the amount of the cheque, plus at least 6% interest per annum from the date of the cheque until the date of the judgment of conviction. The Punjab and Haryana …

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation
2 weeks, 2 days ago

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation

Live Law  

The Jammu and Kashmir High Court held that the declaration of a moratorium would not bar the complainant from filing a complaint under the NI Act. The court said that the debtor cannot take refuge under the Code to frustrate proceedings under the NI Act if he is found liable to pay compensation in the proceedings. The trial court directed …

Criminal Liability For Cheque Dishonour Primarily On Drawer Company, Officers Are Held Liable Only If Section 141 Is Satisfied: Gujarat HC
1 month, 1 week ago

Criminal Liability For Cheque Dishonour Primarily On Drawer Company, Officers Are Held Liable Only If Section 141 Is Satisfied: Gujarat HC

Live Law  

Referring to various case laws on this aspect Justice Divyesh A. Joshi in his order said, “It is found out from the materials available on record that the applicant accused no.3 is not the signatory of the cheque and she has tendered her resignation way-back in the year 2013. As per the above-stated case laws, the liability under Section 141 …

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore
1 month, 3 weeks ago

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore

Live Law  

A Magistrate Court in Mumbai has recently convicted Elder Pharmaceuticals Ltd. for the offence of dishonour of a cheque under Section 138 of the Negotiable Instruments Act, imposing a cost of Rs. 1 had issued cheque to the complainant for discharge of legal liability and it was presented by complainant to bank and even after statutory demand notice accused failed …

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore
1 month, 3 weeks ago

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore

Live Law  

A Magistrate Court in Mumbai has recently convicted Elder Pharmaceuticals Ltd. for the offence of dishonour of a cheque under Section 138 of the Negotiable Instruments Act, imposing a cost of Rs. 1 had issued cheque to the complainant for discharge of legal liability and it was presented by complainant to bank and even after statutory demand notice accused failed …

Section 138 Of NI Act Warrants Strict Construction, Compliance With Proviso Clauses Is A Precondition Before Prosecution: J&K High Court
1 month, 3 weeks ago

Section 138 Of NI Act Warrants Strict Construction, Compliance With Proviso Clauses Is A Precondition Before Prosecution: J&K High Court

Live Law  

Quashing multiple complaints filed under Section 138 of the Negotiable Instruments Act, 1881 citing failure to adhere to mandatory conditions laid down in the Act the Jammu and Kashmir and Ladakh High Court has ruled that Section 138 of the Act being penal in nature, indisputably, warrants strict construction, hence making compliance with its proviso clauses,, and essential before initiating …

Section 143A NI Act | Interim Compensation To Complainant In Cheque Bounce Case Introduced In 2018 Amendment Is Prospective: Rajasthan HC
2 months ago

Section 143A NI Act | Interim Compensation To Complainant In Cheque Bounce Case Introduced In 2018 Amendment Is Prospective: Rajasthan HC

Live Law  

The Jaipur bench of the Rajasthan High Court has reiterated that Section 143A, Negotiable Instruments Act, inserted after an amendment in 2018 introducing payment of interim compensation to complainant in a cheque bouncing case, has prospective application and cannot be applied to complaints filed before the amendment in a retrospective manner. Justice Anoop Kumar Dhand relied upon the Supreme Court …

S. 138 NI Act | Complainant Can't Be Left Remediless Merely Because He Filed 'Premature' Complaint For Cheque Dishonour: Rajasthan HC
2 months, 3 weeks ago

S. 138 NI Act | Complainant Can't Be Left Remediless Merely Because He Filed 'Premature' Complaint For Cheque Dishonour: Rajasthan HC

Live Law  

“ From the aforesaid law laid down by the Apex Court in the case of Yogendra Pratap Singh and Gajanand Burange, it is apparent that in a case where the complaint was filed before the expiry of a period of fifteen days stipulated in the notice which is required to be served upon the drawer of the cheque, the Court …

S.138 NI Act | Director Who Signed Cheque Not Liable For Dishonour When Company Hasn't Been Added As Accused : Supreme Court
2 months, 3 weeks ago

S.138 NI Act | Director Who Signed Cheque Not Liable For Dishonour When Company Hasn't Been Added As Accused : Supreme Court

Live Law  

The Supreme Court reiterated that the authorised signatory of a company cannot be held liable under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque drawn on the company's account unless the company is arraigned as the principal accused. The Sessions Court upheld the conviction, but the Calcutta High Court reversed it, ruling that the cheque …

S. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court
3 months, 2 weeks ago

S. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court

Live Law  

The Supreme Court recently reiterated that the official signatory of the company does not assume the status of a 'drawer of a cheque' to attract the liability for payment of compensation under Section 148 of the Negotiable Instruments Act, 1881. “To wit, as in the case of the position qua Section 143A, NI Act, merely because an officer of a …

Cognizance Of Cheque Dishonour U/S 138 NI Act Can Be Taken Only Upon A Written Complaint: Jharkhand High Court Reiterates
4 months ago

Cognizance Of Cheque Dishonour U/S 138 NI Act Can Be Taken Only Upon A Written Complaint: Jharkhand High Court Reiterates

Live Law  

While hearing a cheque bouncing case, the Jharkhand High Court has reaffirmed that cognizance of offences under Section 142 of the Negotiable Instruments Act does not require a report to the police nor empowers the court to direct the police to investigate the complaint. The court further clarified that under Section 142 of the NI Act the cognizance of an …

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation
4 months, 2 weeks ago

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation

Live Law  

The Jammu and Kashmir and Ladakh High Court has observed that once the complainant proves that a cheque was issued by the accused to discharge a debt, Section 139 mandates that the burden of proof shifts to the accused. The court dismissed an appeal filed by one Choudhary Piara Singh against an acquittal order issued by the Trial Court in …

High Court Rejects Plea to Dismiss Cheque Bounce Complaint
4 months, 3 weeks ago

High Court Rejects Plea to Dismiss Cheque Bounce Complaint

Live Law  

The Karnataka High Court has ruled that a complaint for an offence punishable under Section 138 of the Negotiable Instruments Act would be maintainable, even if a civil suit for recovery of the money is instituted. The court relied on the Apex court judgment in the case of D.PURUSHOTAMA REDDY v. K.SATEESH, (2008) 8 SCC 505, which held that two …

HC Can't Quash Cheque Dishonour Complaint Invoking S.482 CrPC When Complainant Hasn't Consented For Compounding: Supreme Court
6 months, 3 weeks ago

HC Can't Quash Cheque Dishonour Complaint Invoking S.482 CrPC When Complainant Hasn't Consented For Compounding: Supreme Court

Live Law  

The Supreme Court reiterated that dishonour of cheque cases can be compounded under Section 147 of the Negotiable Instruments Act only with the consent of a complainant. In the present case, the High Court had compounded the offence, even though the appellants/ complainant had not consented, by invoking its inherent power under Section 482 Cr.P.C. Act, in the absence of …

Negotiable Instruments Act | Court Can Compound Offences U/S 147 Even After Conviction: Himachal Pradesh High Court
6 months, 3 weeks ago

Negotiable Instruments Act | Court Can Compound Offences U/S 147 Even After Conviction: Himachal Pradesh High Court

Live Law  

The Himachal Pradesh High Court has ruled that under Section 147 of the Negotiable Instruments Act, 1881, offences can be compounded even after the recording of a conviction by the court. Justice Sandeep Sharma delivered this judgment while hearing a petition under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, read with Section 147 of the Negotiable Instruments Act. …

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC
8 months, 1 week ago

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC

Live Law  

The Jharkhand High Court has dismissed a petition to quash a cheque bounce case, emphasizing that determining whether the petitioner had settled the debt for which the cheques were issued is a factual matter requiring a full trial. Justice Anil Kumar Choudhary, presiding over the case, observed, “Now whether or not the petitioner has discharged the debt for which the …

S.138 NI Act - Cheque Dishonour Complaint Can't Be Transferred At The Instance Of Accused : Supreme Court
8 months, 3 weeks ago

S.138 NI Act - Cheque Dishonour Complaint Can't Be Transferred At The Instance Of Accused : Supreme Court

Live Law  

The Supreme Court today observed that transfer of a case for the offence of dishonour of cheque under S. 138 of the Negotiable Instruments Act 1881 cannot be sought at the instance of the accused.The vacation bench of Justices AS Oka and Rajesh Bindal dismissed a transfer petition sought at the behest of the accused involved in the offence under …

[NI Act] If Interest Is Claimed On Cheque Which Doesn't Include Interest Component, It Does Not Remain Legally Enforceable Debt: Punjab & Haryana HC
9 months ago

[NI Act] If Interest Is Claimed On Cheque Which Doesn't Include Interest Component, It Does Not Remain Legally Enforceable Debt: Punjab & Haryana HC

Live Law  

The Punjab & Haryana High Court has made it clear that if interest is claimed on a cheque which does not include an interest component either by adjustments or by filling in the amount, the said cheque does not remain a legally enforceable debt or other liability under Section 138 of Negotiable Instrument Act.The Court quashed the complaint lodged under …

Dishonour of cheque of erstwhile bank not an offence: HC
9 months ago

Dishonour of cheque of erstwhile bank not an offence: HC

Hindustan Times  

The Allahabad high court has ruled that cheques from erstwhile banks became ‘invalid’ after September 30, 2021. For representation only Justice Arun Kumar Singh Deshwal observed while allowing a petition filed by one Archana Singh Gautam seeking quashing of the entire criminal proceeding, including the impugned summoning order in a Complaint Case under Section 138 NI Act. “From the perusal …

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC
9 months, 3 weeks ago

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC

Live Law  

The Allahabad High Court has observed that if the cheque is dishonoured and returned with the endorsements - case referred to drawer, instruction for stoppage of payment, exceeds arrangement, insufficient fund, signature differed or mismatch or account closed - then it will be sufficient for prima facie case for issuing process under Section 138 NI Act. A bench of Justice …

S.138 NI Act | Courts Can't Compel Complainant To Give Consent For Compounding, Mere Repayment Won't Absolve Accused : Supreme Court
10 months, 2 weeks ago

S.138 NI Act | Courts Can't Compel Complainant To Give Consent For Compounding, Mere Repayment Won't Absolve Accused : Supreme Court

Live Law  

Recently, the Supreme Court observed that the Courts cannot compel the complainant in a cheque dishonour case to give consent for the compounding of the complaint merely because the accused has compensated the complainant.The Court also observed that mere repayment of the amount cannot mean that the appellant is absolved from the criminal liabilities under Section 138 of the. Recently, …

[Cheque Dishonour] Complainant Failed To Prove Cheque Was Issued Against Legally Enforceable Debt: Kerala High Court Acquits Accused
1 year ago

[Cheque Dishonour] Complainant Failed To Prove Cheque Was Issued Against Legally Enforceable Debt: Kerala High Court Acquits Accused

Live Law  

The Kerala High Court has held that a complainant under the Negotiable Instruments Act cannot rely on the presumption that the holder of a negotiable instrument has paid consideration for it when his claim is inconsistent.It upheld the acquittal of the accused upon noting that the complainant in the present case had failed to prove that the cheque had been …

S.138 NI Act | Cause Of Action U/S 142(1)(B) Only Arises After Expiry Of 15 Days For Payment Of Amount: Allahabad High Court
1 year ago

S.138 NI Act | Cause Of Action U/S 142(1)(B) Only Arises After Expiry Of 15 Days For Payment Of Amount: Allahabad High Court

Live Law  

The Allahabad High Court has held that the cause of action under Section 142 of the Negotiable Instruments Act, 1881 arises after expiry of 15 days granted to the drawer to pay the amount to the payee/cheque holder under clause of Section 138 of the Act. Section 142 of the NI Act provides that a complaint must be made within …

Blank Cheque Voluntarily Signed & Handed Over By Drawer Towards Payment Attracts Presumption Under S.139 NI Act : Supreme Court
1 year ago

Blank Cheque Voluntarily Signed & Handed Over By Drawer Towards Payment Attracts Presumption Under S.139 NI Act : Supreme Court

Live Law  

The Supreme Court has reiterated that a blank cheque leaf, which has been voluntarily signed by the drawer and handed over to the payee towards some payment, will carry the presumption that it was issued in discharge of a legally enforceable debt as per Section 139 of the Negotiable Instruments Act. ".even if a blank cheque leaf is voluntarily signed …

S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court
1 year, 1 month ago

S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court

Live Law  

The Karnataka High Court has held that a single complaint made under Section 138 of the Negotiable Instruments Act, is maintainable for multiple cheques issued by the respondent/accused on the same cause of action. A single judge bench of Justice K Natarajan allowed the petition filed by complainant A Adinarayana Reddy and set aside the order dismissing the complaint filed …

High Court Under S. 482 CrPC Should Not Decide Whether Debt In Cheque Dishonour Case Is Time-Barred: Supreme Court
1 year, 1 month ago

High Court Under S. 482 CrPC Should Not Decide Whether Debt In Cheque Dishonour Case Is Time-Barred: Supreme Court

Live Law  

The Supreme Court recently reiterated that in proceedings under Section 138 of the Negotiable Instruments Act, 1881, the question of whether the underlying debt is time-barred is based on the evidence. “Undoubtedly, the question regarding the time-barred nature of an underlying debt or liability in proceedings under Section 138 of the NI Act is a mixed question of law and …

S.138 NI Act | Proceedings For Cheque Dishonour Be Quashed Once Complainant Signs Deed Accepting Amount In Full & Final Settlement: Supreme Court
1 year, 2 months ago

S.138 NI Act | Proceedings For Cheque Dishonour Be Quashed Once Complainant Signs Deed Accepting Amount In Full & Final Settlement: Supreme Court

Live Law  

In a Criminal Appeal arising out of proceedings under Section 138 of the Negotiable Instruments Act, 1881, the Supreme Court held that once the settlement has been arrived at and the complainant has signed the deed accepting an amount in full and final settlement, the proceedings under this provision must be quashed. “Considering the overall facts and circumstances of the …

Notice Under S.138 NI Act Invalid If Omnibus Demand Is Made Without Specifying Cheque Amount : Supreme Court
1 year, 2 months ago

Notice Under S.138 NI Act Invalid If Omnibus Demand Is Made Without Specifying Cheque Amount : Supreme Court

Live Law  

Finding the demand raised in a notice issued under Section 138 of the Negotiable Instruments Act, 1881, to be omnibus in nature, the Supreme Court quashed a criminal case for the dishonour of a cheque. The Supreme Court bench comprising Justices CT Ravikumar and PV Sanjay Kumar while referring to the case Suman Sethi, in para 6 noted that: “A …

S.138 NI Act : Supreme Court Slams Accused In Cheque Bounce Case For Not Honouring Undertaking To Pay; Imposes Rs 5 Lakhs Cost
1 year, 2 months ago

S.138 NI Act : Supreme Court Slams Accused In Cheque Bounce Case For Not Honouring Undertaking To Pay; Imposes Rs 5 Lakhs Cost

Live Law  

The Supreme Court took a strong stand while affirming the suspension of the accused/ present appellant's sentence, who was convicted under Section 138 of the Negotiable Instruments Act, 1881.The Court highlighted that the complainant has been litigating since 2007, i.e., for almost 16 years, but has not been able to receive its due amount. The Supreme Court took a strong …

Cheque Dishonour | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court
1 year, 3 months ago

Cheque Dishonour | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court

Live Law  

The Karnataka High Court has held that in a cheque bounce case, the onus is on the accused to prove that the cheque was misused after it was issued to another person in lieu of a loan borrowed from them and thus did not amount to a legally enforceable debt. The primary contention of the accused was that the complainant …

S.138 NI Act | Availability Of Funds In Other Bank Accounts Not A Defence; Cheque Dishonour Relates To Specific Account: Supreme Court
1 year, 3 months ago

S.138 NI Act | Availability Of Funds In Other Bank Accounts Not A Defence; Cheque Dishonour Relates To Specific Account: Supreme Court

Live Law  

Recently, the Supreme Court categorically held that in proceedings initiated for bounced cheques, the defence that there are sufficient funds in the other bank accounts cannot be appreciated.“In a proceeding under Section 138 of the Negotiable Instruments Act, the accused cannot rely upon other bank accounts for. Recently, the Supreme Court categorically held that in proceedings initiated for bounced cheques, …

S.138 NI Act | Offence Can Be Compounded At Initial Stage Without Complainant's Consent, Provided They Are Duly Compensated
1 year, 3 months ago

S.138 NI Act | Offence Can Be Compounded At Initial Stage Without Complainant's Consent, Provided They Are Duly Compensated

Live Law  

The Bombay High Court recently held that a court can compound the offence in check bounce cases without the complainant's consent provided that the accused applied for compounding in the initial stages of the case and the complainant was adequately compensated. “when the application for compounding offences u/s 138 of the NI Act is made at the initial stage of …

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains
1 year, 5 months ago

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains

Live Law  

Reiterating the principles relating to the presumption under Section 139 of the Negotiable Instruments Act 1881, the Supreme Court reversed the acquittal of an accused in a case for cheque dishonour.A bench comprising Justices Aravind Kumar and SVN Bhatti observed that there was a "fundamental flaw" in the approach taken by both the Trial Court and the High Court.Summarising the …

S.142 NI Act | Third Party Cannot Prosecute Drawer For Dishonour Of Cheque: Kerala High Court
1 year, 6 months ago

S.142 NI Act | Third Party Cannot Prosecute Drawer For Dishonour Of Cheque: Kerala High Court

Live Law  

The Kerala High Court recently laid down that a third party cannot prosecute the drawer of cheque for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. Perusing Section 142 of the Act which provides that no court shall take cognizance of. Perusing Section 142 of the Act which provides that no court shall take cognizance of …

Section 138 NI Act| 'Notice Not Invalid If Other Amount Is Separately Indicated Therein Along With Cheque Amount': Allahabad High Court
1 year, 10 months ago

Section 138 NI Act| 'Notice Not Invalid If Other Amount Is Separately Indicated Therein Along With Cheque Amount': Allahabad High Court

Live Law  

The Allahabad High Court has held that if in a demand notice, other amounts are mentioned along with the cheque amount in a separate portion in detail, the said notice can not be faulted in a legal term of Section 138 of the Act, 1881.For context, as per Section 138 of the 1881 Act, the payee or the holder in …

[S.147 Negotiable Instruments Act] Offence Can Be Compounded Post-Conviction For Cheque Dishonour: Himachal Pradesh High Court
2 years ago

[S.147 Negotiable Instruments Act] Offence Can Be Compounded Post-Conviction For Cheque Dishonour: Himachal Pradesh High Court

Live Law  

The Himachal Pradesh High Court on Wednesday observed that courts while exercising power under Section 147 of the Negotiable Instrument Act are sufficiently empowered to proceed to compound an offence, even in cases where accused stands convicted. The moot question that fell for adjudication was as to whether after upholding the judgments of conviction and order of sentence passed by …

Supreme Court Annual Digest 2022- Negotiable Instruments Act
2 years, 2 months ago

Supreme Court Annual Digest 2022- Negotiable Instruments Act

Live Law  

Negotiable Instruments Act, 1881 Section 3 - Banker Negotiable Instruments Act, 1881 - Section 3 - ‘Banker’ includes any person acting as a banker and any post office savings bank. Pradeep Kumar v. Post Master General, 2022 LiveLaw 139 : 6 SCC 351 Section 13 - “Negotiable instrument” Negotiable Instruments Act, 1881 - Section 13 - Different principles apply for …

Merely Being Signatory To A Cheque Does Not Make A Person Guilty Of Offence Under Section 138 NI Act: Delhi High Court
2 years, 3 months ago

Merely Being Signatory To A Cheque Does Not Make A Person Guilty Of Offence Under Section 138 NI Act: Delhi High Court

Live Law  

The Delhi High Court has said that prima facie, merely being a signatory to a cheque does not, in itself, make a person guilty of the offence under Section 138 of the Negotiable Instruments Act.Observing that the offence is triggered at the stage when a cheque is returned unpaid by the bank for insufficiency of funds, Justice Anup Jairam Bhambhani …

Cash Transaction Exceeding Rs. 20K Does Not Nullify The Transaction In S.138 NI Act Case: Karnataka High Court
2 years, 3 months ago

Cash Transaction Exceeding Rs. 20K Does Not Nullify The Transaction In S.138 NI Act Case: Karnataka High Court

Live Law  

The Karnataka High Court has held that contravention of Section 269SS of the Income Tax Act, which prescribes if the transaction amount is more than Rs.20,000, such transaction shall be made through cheque or demand draft, does not make the transaction void and it can be called a legally recoverable debt. It was contended by the petitioner that as per …

Cheque Dishonour- Additional Accused Cannot Be Impleaded After Expiry Of Limitation Period Under Sec 142 NI Act : Supreme Court
2 years, 4 months ago

Cheque Dishonour- Additional Accused Cannot Be Impleaded After Expiry Of Limitation Period Under Sec 142 NI Act : Supreme Court

Live Law  

The Supreme Court held that impleadment of additional accused subsequent to the filing of a cheque bounce complaint is not permissible once the limitation prescribed for taking cognizance of the offence under Section 142 of the Negotiable Instruments Act has expired.In this case, the High Court quashed a summoning order passed by a Magistrate in a cheque bounce complaint on …

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC
2 years, 4 months ago

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC

Live Law  

The Karnataka High Court has quashed the proceedings initiated against two former directors of a company under Section 138 of the Negotiable Instruments Act by the complainant claiming that when he invested the money in the company they were directors. A private complaint was filed under Section 200 of the Code of Criminal Procedure, 1973 for the offence punishable under …

Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court
2 years, 4 months ago

Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court

Live Law  

The Karnataka High Court has said proceedings under Section 138 of the Negotiable Instruments Act cannot be initiated against the wife for "dishonor of the cheque issued by her husband". A single judge bench of Justice M I Arun while allowing the petition filed by petitioner Veenashri and quashing the proceedings against her, said, "Petitioner cannot be made accused for …

S.138 NI Act | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates
2 years, 4 months ago

S.138 NI Act | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates

Live Law  

The Kerala High Court has reiterated that when a cheque issued by a company is dishonored, prosecution under Section 138 of the Negotiable Instruments Act against its Director shall not sustain if the company is not arrayed as an accused. Justice A. Badharudeen relying on the law laid down by the Apex Court, observed that prosecution against the director of …

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time
2 years, 4 months ago

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time

Live Law  

A party faced the ire of the Supreme Court for taking a cheque dishonour dispute to the level of apex level before agreeing to settle the matter with the complainant. The appellant had approached the Supreme Court challenging the concurrent orders of conviction passed by three courts against him for the offence of cheque dishonour under Section 138 of the …

S.138 NI Act | Fine Imposed Must Not Exceed Double The Cheque Amount: Kerala High Court
2 years, 4 months ago

S.138 NI Act | Fine Imposed Must Not Exceed Double The Cheque Amount: Kerala High Court

Live Law  

The Kerala High Court on Wednesday said that the maximum amount of fine, including the interest, imposed in a case under Section 138 of the Negotiable Instruments Act, 1881 must not exceed twice the amount of the cheque.Justice A. Badharudeen said the punishment provided for commission of offence under Section 138 of the N.I Act is imprisonment for a term …

S.141 NI Act | Sole Proprietor Alone Can't Be Sued For Offence U/S 138, Sole Proprietary Concern Must Also Be Arrayed As Accused: P&H High Court
2 years, 6 months ago

S.141 NI Act | Sole Proprietor Alone Can't Be Sued For Offence U/S 138, Sole Proprietary Concern Must Also Be Arrayed As Accused: P&H High Court

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The Punjab and Haryana High Court recently held that when a cheque issued by a sole proprietary entity is dishonoured, it is necessary to array the proprietary concern as an accused, along with the sole proprietor. It observed, When the statutory signification assigned to a 'Company', does visibly cover not only any corporate body, but also covers a firm, or …

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