NI Act | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court
1 week, 5 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 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." After hearing the submissions, the Court opined that the trial Court has "miserably failed" to take into account the peculiar facts of the present case and has imposed a fine of Rs.10,000 only under Section 138 of the Act and in default of payment of fine, the accused had been directed to further undergo rigorous imprisonment for a period of two months and no amount of compensation was awarded. Justice Shekhawat highlighted that the Legislature has given discretion to the Magistrate to impose a sentence of fine which may extend to double the amount of cheque and, therefore, the sentence of fine whenever imposed by the Criminal Court upon conviction of accused under Section 138 of the NI Act must be sufficient enough to adequately compensate the complainant.

Trial Court Fine Date Act Sentence Magistrate Haryana High Court Impose 138 Section 138 Cheque Punjab Haryana Section 138 Of Ni Act Imposing  interest  trial  judgment  uniformity  impose  ni  fine  imposing  date  138  high  equivalent  court  punjab  haryana  sentence  act  cheque

History of this topic

NI Act Allows Filing Of Cheque Dishonour Complaint At Place Of Payee Bank; Accused Can't Seek Transfer Citing Inconvenience: Supreme Court
Trending News
2 weeks, 4 days ago

NI Act Allows Filing Of Cheque Dishonour Complaint At Place Of Payee Bank; Accused Can't Seek Transfer Citing Inconvenience: Supreme Court

Live Law  

The Supreme Court today ruled that a cheque dishonor complaint under Section 138 of the Negotiable Instruments Act, 1881, should be filed in the court having jurisdiction over the branch of the bank where the payee maintains an account i.e., where the cheque is presented for collection. “A conjoint reading of Section 142 along with the explanation thereof, makes the …

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation
2 weeks, 5 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 …

Madras High Court issues directions for speedy disposal of cheque bounce cases
1 month, 1 week ago

Madras High Court issues directions for speedy disposal of cheque bounce cases

The Hindu  

The Madras High Court has issued a slew of directions to the trial courts for the speedy disposal of cheque bounce cases after finding that cases under Section 138 of the Negotiable Instruments Act of 1881 had been pending for years before the Judicial Magistrates due to various reasons. The judge recalled the Supreme Court to have found 33.44 lakh …

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 …

Accused In Cheque Bounce Cases Should Not Be Equated With Those Convicted Under Other Penal Statutes: Karnataka High Court
1 month, 3 weeks ago

Accused In Cheque Bounce Cases Should Not Be Equated With Those Convicted Under Other Penal Statutes: Karnataka High Court

Live Law  

the Courts while exercising its discretion at the time of passing the appropriate sentence in a given case, is entitled to use its discretionary power in awarding imprisonment or fine or with both. The Karnataka High Court recently observed that an accused who has suffered an order of conviction in a prosecution under Section 138 of the Negotiable Instruments Act …

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 …

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal
2 months, 2 weeks ago

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal

Live Law  

Rajasthan High Court set aside conviction and sentence in a cheque dishonour case in light of settlement reached between the parties while imposing a cost of 15% of the cheque value on the petitioner since the compromise was reached at after rejection of appeal filed by the convict and pending revision petition. The bench of Justice Manoj Kumar Garg was …

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. 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 …

Condition Of Pre-Deposit U/S 148 Negotiable Instruments Act Can't Be Used To Jeopardise Convict's Right To Appeal: Rajasthan High Court
4 months, 2 weeks ago

Condition Of Pre-Deposit U/S 148 Negotiable Instruments Act Can't Be Used To Jeopardise Convict's Right To Appeal: Rajasthan High Court

Live Law  

Rajasthan High Court has reiterated that Section 148 of the Negotiable Instruments Act should not be imposed in a situation where the condition of depositing 20% of the fine would amount to deprivation of the right of appeal of a person convicted under Section 138. Section 148, NI Act, provides that in an appeal by a convict of cheque dishonour, …

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation
4 months, 3 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 …

Negotiable Instruments Act | Court Can Compound Offences U/S 147 Even After Conviction: Himachal Pradesh High Court
7 months 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, 2 weeks 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 …

[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, 1 week 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, 1 week 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 | 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 …

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.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 …

Section 138 NI Act | Infirmity In Cheque Return Memo Does Not Render Entire Trial As Nullity: Delhi High Court
2 years, 3 months ago

Section 138 NI Act | Infirmity In Cheque Return Memo Does Not Render Entire Trial As Nullity: Delhi High Court

Live Law  

The Delhi High Court has held that any infirmity in the cheque return memo does not render the entire trial under Section 138 of the Negotiable Instruments Act as nullity.Observing that cheque return memo is a memo informing the payee and its banker about the dishonour of a cheque, Justice Sudhir Kumar Jain said if the said cheque return memo …

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 …

S.138 NI Act | Fine Imposed Must Not Exceed Double The Cheque Amount: Kerala High Court
2 years, 5 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 …

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 …

S.357 CrPC | When Fine Forms Part Of Sentence U/S 138 NI Act, Court Ought To Order Payment Of Compensation From Fine: Kerala HC
2 years, 6 months ago

S.357 CrPC | When Fine Forms Part Of Sentence U/S 138 NI Act, Court Ought To Order Payment Of Compensation From Fine: Kerala HC

Live Law  

The Kerala High Court on Tuesday, while considering a Revision Petition observed that in an offence under Section 138 of the Negotiable Instruments Act, when the Court imposes sentence of imprisonment and fine, it has to order payment of compensation from the amount of fine as provided under Section 357 of CrPC. Justice A. Badharudeen observed:.in an offence under Section …

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

Live Law  

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 …

Supreme Court Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881
2 years, 6 months ago

Supreme Court Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881

Live Law  

Code of Criminal Procedure, 1973; Section 482 - Negotiable Instruments Act, 1881; Section 138,139 - The Court should be slow to grant the relief of quashing a complaint at a pre-trial stage, when the factual controversy is in the realm of possibility particularly because of the legal presumption - In a situation where the accused moves Court for quashing even …

Cheques Dishonored Due To Stop Payment, Account Closed & Signature Mismatch, All Fall Within Ambit Of S.138 NI Act: J&K&L High Court
2 years, 7 months ago

Cheques Dishonored Due To Stop Payment, Account Closed & Signature Mismatch, All Fall Within Ambit Of S.138 NI Act: J&K&L High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court recently reiterated that the provisions contained in Section 138 of the NI Act must be interpreted in a liberal manner so as to achieve the object for which the said provision has been enacted. Not only the cases of dishonour of cheques on account of insufficiency of funds or on account of …

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC
2 years, 7 months ago

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC

Live Law  

The Himachal Pradesh High Court has observed that if the drawer of a cheque fails to raise a "probable defence" or to contest the existence of a legally enforceable debt or to deny the issuance of the cheque and signatures thereupon, the statutory presumption in favour of cheque holder under Section 139 of Negotiable Instruments Act comes into play. "Interestingly, …

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court
2 years, 7 months ago

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court recently held that the service of notice upon the accused in cheque dishonour case cannot be denied in light of Section 27 of the General Clauses Act, which provides a presumption in favour of the complainant that the notice had been delivered.The bench comprising Justice Jasjit Singh Bedi was dealing with a revision petition …

Undisputed Signatures On The Cheque In Itself Are Not Sufficient For Conviction Under Section 138 Of NI Act: Punjab And Haryana High Court
2 years, 9 months ago

Undisputed Signatures On The Cheque In Itself Are Not Sufficient For Conviction Under Section 138 Of NI Act: Punjab And Haryana High Court

Live Law  

Punjab and Haryana High Court while dealing with an application under Section 378 Cr.P.C. for grant of leave to appeal against the judgment acquitting respondent in Complaint Case of 2012, held that undisputed signatures of the respondent on the cheque in itself are not sufficient for conviction under Section 138 of the Act. The trial court acquitted the respondent by …

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court
3 years ago

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court

Live Law  

If a cheque is returned by a bank with an endorsement "account frozen", then it presupposes the existence of the account, observed the Supreme Court in a recent case.The Court expressed surprise at the stand of the bank that the no such account was maintained and operated by it, despite returning the cheque with the remark "account frozen".In this background, …

2021 Supreme Court Digest On Negotiable Instruments Act
3 years, 2 months ago

2021 Supreme Court Digest On Negotiable Instruments Act

Live Law  

Moratorium Under Section 14 IBC Covers Section 138 NI Act Proceedings Against Corporate Debtor For Cheque DishonourIn P Mohanraj and others v M/s Shah Brothers Ispat Ltd, the Supreme Court held that the declaration of moratorium under Section 14 of the Insolvency and Bankruptcy Code covers criminal proceedings for dishonour of cheque under Section 138 of the Negotiable Instruments. Moratorium …

Gravity Of Complaint Under Negotiable Instruments Act Cannot Be Equated With An Offence Under IPC Or Other Criminal Offence: Supreme Court
3 years, 6 months ago

Gravity Of Complaint Under Negotiable Instruments Act Cannot Be Equated With An Offence Under IPC Or Other Criminal Offence: Supreme Court

Live Law  

The Supreme Court observed that the gravity of complaint under Negotiable Instruments Act cannot be equated with an offence under the provisions of the Indian Penal Code or other criminal offence.The court reiterated that that the presumption under Section 139 of the Negotiable Instruments Act would remain, until the contrary is proved. The Supreme Court observed that the gravity of …

Depositing part compensation can’t be pre-condition for admitting plea in cheque bounce cases, rules HC
4 years, 3 months ago

Depositing part compensation can’t be pre-condition for admitting plea in cheque bounce cases, rules HC

Hindustan Times  

The Punjab and Haryana High Court has ruled that depositing a part of compensation cannot be made a pre-condition for entertaining a convict’s appeal for hearing in a cheque bounce case. The HC bench observed that even as the Negotiable Instruments Act could override provisions of the Code of Criminal Procedure, there is no such specific provision in it that …

Cheque-Bounce Not An Offence Against Society, Accused Can Escape Punishment By Compounding: P & H HC Reduces Imprisonment on Account Of Mitigating Factors [Read Order]
4 years, 7 months ago

Cheque-Bounce Not An Offence Against Society, Accused Can Escape Punishment By Compounding: P & H HC Reduces Imprisonment on Account Of Mitigating Factors [Read Order]

Live Law  

"Cheque bounce is not an offence against society and an accused can escape punishment by settling with the complainant", observed the Punjab and Haryana Court on Tuesday. The Single Bench expressed that in imposing a sentence under Section 138 of the Negotiable Instruments Act, while the Court must be alive to the concern of the Legislature in inserting Chapter XVII …

Section 138 NI Act: Cheque Not Valid If Amount Written Is Uncertain, Holds Delhi Court [Read Order]
4 years, 7 months ago

Section 138 NI Act: Cheque Not Valid If Amount Written Is Uncertain, Holds Delhi Court [Read Order]

Live Law  

A Delhi Court has recently held that an instrument cannot be termed as a cheque, if it does not specify a "certain amount" of money to be paid to a certain person. "There could have been no dispute about this instrument being a cheque within the definition of section 6 of the NI Act but for its failure to meet …

Decriminalization Of Dishonour Of Cheque And Fundamentals About Section 138 Of The N.I Act, 1881
4 years, 9 months ago

Decriminalization Of Dishonour Of Cheque And Fundamentals About Section 138 Of The N.I Act, 1881

Live Law  

The outbreak of the novel COVID-19 has an impact on almost all the sectors across the globe and economy being no exception. Further, in Sasseriyil Joseph v. Devassia, vide order dated 10.09.2001, while upholding the view taken by the High Court of Kerala, the Supreme Court held that the cheque in question was issued by the accused for debt which …

S.138 NI Act: SC Directs RBI To Consider Developing A New Proforma Cheque To Include Purpose Of Payments [Read Order]
5 years ago

S.138 NI Act: SC Directs RBI To Consider Developing A New Proforma Cheque To Include Purpose Of Payments [Read Order]

Live Law  

The Supreme Court has recently asked The Reserve Bank of India to consider developing a new proforma of cheques so as to include the purpose of payment, along with other informations to facilitate adjudication of real issues in cheque bounce cases. The Reserve Bank of India may consider developing a new proforma of cheques so as to include the purpose …

NI Act - Presumption Under Section 139 Applies To Guarantor Cheques Also : Kerala HC [Read Judgment]
5 years, 2 months ago

NI Act - Presumption Under Section 139 Applies To Guarantor Cheques Also : Kerala HC [Read Judgment]

Live Law  

The High Court of Kerala has held that the presumption under Section 139 of Negotiable Instruments Act applies even to a cheque issued by a guarantor. The Court held that a guarantor's cheque is also a cheque regarded under Section 138 of the Negotiable Instruments Act, 1881, as it is being issued in discharge of legally enforceable debt. The court …

Dishonour Of Cheques: 14 Latest Supreme Court Judgments
5 years, 9 months ago

Dishonour Of Cheques: 14 Latest Supreme Court Judgments

Live Law  

Section 148 NI Act Retrospective In this case, the Supreme Court held that Section 148 of the Negotiable Instruments Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence under Section 138 of the N.I. Complainant Need Not Prove Source Of Fund, Once Section 139 Presumption Is Drawn The …

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