138 NI Act- Subsequent Filling Of An Unfilled Signed Cheque Is Not An Alteration: SC [Read Judgment]
5 years, 11 months ago

138 NI Act- Subsequent Filling Of An Unfilled Signed Cheque Is Not An Alteration: SC [Read Judgment]

Live Law  

The Supreme Court has held that subsequent filling in of an unfilled signed cheque is not an alteration and even a blank cheque leaf, voluntarily signed and handed over by the accused, which is towards some payment, would attract presumption under Section 139 of the Negotiable Instruments Act, in the absence of any cogent evidence to show that the cheque was not issued in discharge of a debt. The bench comprising Justice R. Banumathi and Justice Indira Banerjee also observed that existence of a fiduciary relationship between the payee of a cheque and its drawer, would not disentitle the payee to the benefit of the presumption under Section 139 of the Negotiable Instruments Act, in the absence of evidence of exercise of undue influence or coercion. The main issue considered in Bir Singh vs. Mukesh Kumar was whether the payee of a cheque is disentitled to the benefit of the presumption under Section 139 of the Negotiable Instruments Act, of a cheque duly drawn, having been issued in discharge of a debt or other liability, only because he is in a fiduciary relationship with the person who has drawn the cheque. Referring to various judgments on this aspect, the bench observed that that the onus to rebut the presumption under Section 139 that the cheque has been issued in discharge of a debt or liability is on the accused and the fact that the cheque might be post dated does not absolve the drawer of a cheque of the penal consequences of Section 138 of the Negotiable Instruments Act.

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History of this topic

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

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation
2 months, 1 week 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
2 months, 1 week 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
4 months, 2 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. …

[Cheque Dishonour] Accused Often Get Away Due To Lack Of Evidence, Courts Must Acknowledge Friendly Cash Loans Between Parties: Delhi HC
4 months, 2 weeks ago

[Cheque Dishonour] Accused Often Get Away Due To Lack Of Evidence, Courts Must Acknowledge Friendly Cash Loans Between Parties: Delhi HC

Live Law  

While hearing a matter on cheque bounce under the Negotiable Instruments Act, the Delhi High Court recently said that it would be prudent for courts to acknowledge that friendly cash loans are provided between parties without an existing document trail, with accused often getting acquitted because the complainant is unable to prove the existence of a debt. A single judge …

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
5 months, 4 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 …

S.138 NI Act - Cheque Dishonour Complaint Can't Be Transferred At The Instance Of Accused : Supreme Court
6 months, 2 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 …

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC
7 months, 1 week 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 | Supreme Court Sets Aside HC Decision Allowing Amendment Of Cheque Date Mentioned In Complaint
8 months, 1 week ago

S.138 NI Act | Supreme Court Sets Aside HC Decision Allowing Amendment Of Cheque Date Mentioned In Complaint

Live Law  

The Supreme Court recently set aside a judgment of the High Court which allowed a complainant in a cheque dishonour case to amend the date of the cheque mentioned in the complaint.The Supreme Court noted that the amendment application was moved after the evidence stage was over. The Supreme Court recently set aside a judgment of the High Court which …

S.138 NI Act | Courts Can't Compel Complainant To Give Consent For Compounding, Mere Repayment Won't Absolve Accused : Supreme Court
8 months, 1 week 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, …

Blank Cheque Voluntarily Signed & Handed Over By Drawer Towards Payment Attracts Presumption Under S.139 NI Act : Supreme Court
10 months, 2 weeks 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 | Proceedings For Cheque Dishonour Be Quashed Once Complainant Signs Deed Accepting Amount In Full & Final Settlement: Supreme Court
1 year 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 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 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 …

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

S.142 NI Act | Third Party Cannot Prosecute Drawer For Dishonour Of Cheque: Kerala High Court
1 year, 4 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, 7 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 …

Merely Being Signatory To A Cheque Does Not Make A Person Guilty Of Offence Under Section 138 NI Act: Delhi High Court
2 years 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, 1 month 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 …

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

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, 2 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 …

Drawer Liable Even If Details Of Cheque Was Filled Up By Some Other Person; Handwriting Expert's Report Cannot Rebut Presumption U/s 139 NI Act: Supreme Court
2 years, 4 months ago

Drawer Liable Even If Details Of Cheque Was Filled Up By Some Other Person; Handwriting Expert's Report Cannot Rebut Presumption U/s 139 NI Act: Supreme Court

Live Law  

The Supreme Court observed that a drawer of a cheque is liable even if the details in the cheque have been filled up not by the drawer, but by some other person.The presumption which arises on the signing of the cheque cannot be rebutted merely by the report of a hand-writing expert, the bench comprising Justices DY Chandrachud and AS …

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, 4 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, 4 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, …

S.143A NI Act | Court Not Obliged To Direct Payment Of Interim Compensation In Cheque Bounce Cases: Bombay High Court
2 years, 5 months ago

S.143A NI Act | Court Not Obliged To Direct Payment Of Interim Compensation In Cheque Bounce Cases: Bombay High Court

Live Law  

The Bombay High Court has said that courts don't have a duty to grant interim compensation to the complainant in a cheque bounce case. The question before the court was - whether Section 143-A of the NI Act, which empowers the Court to direct payment of interim compensation are mandatory or directory? Section 143-A doesn't cast any duty on court …

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, 7 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 …

High Courts Should Be Slow To Grant Relief Of Quashing Complaint U/Sec 138 NI Act At A Pre Trial Stage: Supreme Court
2 years, 8 months ago

High Courts Should Be Slow To Grant Relief Of Quashing Complaint U/Sec 138 NI Act At A Pre Trial Stage: Supreme Court

Live Law  

The Supreme Court observed that a High Courts should be slow to grant the relief of quashing a complaint under Section 138 of Negotiable Instruments Act at a pre-trial stage.In a situation where the accused moves Court for quashing even before trial has commenced, the Court's approach should be careful enough to not to prematurely extinguish the case by disregarding …

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court
2 years, 10 months 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, …

Section 138 NI Act - Prima Facie Indication That Complaint Is Filed By Authorized Person Of Company Sufficient For Magistrate To Take Cognisance : Supreme Court
2 years, 10 months ago

Section 138 NI Act - Prima Facie Indication That Complaint Is Filed By Authorized Person Of Company Sufficient For Magistrate To Take Cognisance : Supreme Court

Live Law  

The Supreme Court observed that, in a cheque bounce case, when the complainant/payee is a company, an authorized employee can represent the company. "Indication in the complaint and the sworn statement to the effect that the complainant is represented by an authorized person who has knowledge, would be sufficient. In addition, the supporting documents which were available on the record …

2021 Supreme Court Digest On Negotiable Instruments Act
3 years 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 …

Section 138 NI Act Attracted Even In Cases Where Debt Is Incurred After Cheque Is Drawn But Before Presentation: Supreme Court
3 years, 1 month ago

Section 138 NI Act Attracted Even In Cases Where Debt Is Incurred After Cheque Is Drawn But Before Presentation: Supreme Court

Live Law  

The Supreme Court observed that Section 138 of Negotiable Instruments Act is attracted in cases where debt is incurred after the drawing of the cheque but before its encashment.The true purpose of Section 138 would not be fulfilled, if 'debt or other liability' is interpreted to include only a debt that exists as on the date of drawing of the …

Sec 138 NI Act- Absence Of Salutation In Cheque Irrelevant; Not Ground For Acquittal: Kerala High Court
3 years, 3 months ago

Sec 138 NI Act- Absence Of Salutation In Cheque Irrelevant; Not Ground For Acquittal: Kerala High Court

Live Law  

The Kerala High Court recently ruled that the absence of salutation while drawing the cheque by the accused cannot be a ground for the accused to be acquitted in proceedings under Section 138 of the Negotiable Instruments Act.Justice Gopinath P while allowing an appeal, observed: "The alphabets 'M/s' which is short form for 'Messrs' is normally a salutation intended to …

Enlargement of Scope & Changed Judicial Contours of Section 138 NI Act Before SC's Ruling in M/s Laxmi Dyechem v. State of Gujarat
3 years, 6 months ago

Enlargement of Scope & Changed Judicial Contours of Section 138 NI Act Before SC's Ruling in M/s Laxmi Dyechem v. State of Gujarat

Live Law  

Prolegomenon to the Financial Transactions in Cheques: The law apropos negotiable instruments is the law of the commercial world legislated to facilitate the activities & transactions in trade and commerce and further, to bolster the efficacy of banking operations as well as to foster remittances through cheques to discharge debt obligations & liabilities eventually, not only inspiring confidence in creditors …

Section 138 NI Act : Supreme Court Seeks Centre's Views On Creation Of Additional Courts For Cheque Dishonour Case
3 years, 10 months ago

Section 138 NI Act : Supreme Court Seeks Centre's Views On Creation Of Additional Courts For Cheque Dishonour Case

Live Law  

The Supreme Court on Thursday sought the views of the Central Government on the creation of additional courts for the trial of cheque dishonour cases under Section 138 of the Negotiable Instruments Act, 1881.A bench comprising Chief Justice of India S A Bobde, Justices L Nageswara Rao and S Ravindra Bhat asked the Additional Solicitor General Vikramjit Banerjee if the …

Dishonour Of Cheques- Blank Cheque Would Attract Presumption U/s 139 NI Act If Signatures Are Admitted: Supreme Court
3 years, 10 months ago

Dishonour Of Cheques- Blank Cheque Would Attract Presumption U/s 139 NI Act If Signatures Are Admitted: Supreme Court

Live Law  

The Supreme Court observed that even a blank cheque leaf would attract presumption under Section 139 of the Negotiable Instruments Act when signatures are admitted by the accused.The bench comprising Justices NV Ramana, Surya Kant and Aniruddha Bose observed that 'reverse onus' clauses under Section 118 and Section 139 of the Negotiable Instruments Act become operative once the signature. The …

Section 138 NI Act: Cheque Not Valid If Amount Written Is Uncertain, Holds Delhi Court [Read Order]
4 years, 5 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 …

S.138 NI Act: SC Directs RBI To Consider Developing A New Proforma Cheque To Include Purpose Of Payments [Read Order]
4 years, 10 months 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 …

Complaint U/s 138 NI Act Cannot Be Quashed When Disputed Question Of Facts Are Involved: SC [Read Judgment]
4 years, 10 months ago

Complaint U/s 138 NI Act Cannot Be Quashed When Disputed Question Of Facts Are Involved: SC [Read Judgment]

Live Law  

The Supreme Court has observed that a cheque bounce complaint under Section 138 of the Negotiable Instruments Act cannot be quashed when disputed questions of facts are involved. In this case, the High Court, in a petition filed by the accused, observed that the criminal case has been filed under Section 138 of N.I. Regarding the power under Section 482 …

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

Section 138 NI Act- 'Amount Due' Not Required To Be Proved As If Proving Debt Before Civil Court: SC [Read Judgment]
5 years, 2 months ago

Section 138 NI Act- 'Amount Due' Not Required To Be Proved As If Proving Debt Before Civil Court: SC [Read Judgment]

Live Law  

The Supreme Court has observed that a complainant in a cheque bounce case need not prove the 'amount due' as if he is to prove a debt before civil court.The case of the complainant was that the accused purchased apple crops from him and the accounts were finally settled between him and the authorised agent of accused and a sum …

Section 138 NI Act- No Provision For Consolidation Of Multiple Cases Arising Out Of Single Notice: SC [Read Order]
5 years, 3 months ago

Section 138 NI Act- No Provision For Consolidation Of Multiple Cases Arising Out Of Single Notice: SC [Read Order]

Live Law  

While refusing a plea to consolidate multiple cheque bounce cases against the accused which emanated from a single notice, the Supreme Court has observed that there is no provision of consolidation of cases in the Code of Criminal Procedure.Four separate complaints were filed against the accused after four cheques allegedly issued by him to the complainant bounced. While refusing a …

Evidence Adduced To Raise Presumption U/s 139 NI Act Can't Be Discarded Merely On The Ground That There Is No Such Averment In Complaint: SC [Read Judgment]
5 years, 4 months ago

Evidence Adduced To Raise Presumption U/s 139 NI Act Can't Be Discarded Merely On The Ground That There Is No Such Averment In Complaint: SC [Read Judgment]

Live Law  

The Supreme Court has observed that evidence adduced by the Complainant in a Cheque bounce case to raise statutory presumption under Section 139 cannot be discarded merely on the ground that there were no such averments in the complaint.In M/S Shree Daneshwari Traders vs. Sanjay Jain, both the Trial Court and the High Court disbelieved the. The Supreme Court has …

Negotiable Instruments Act: Heavy Burden Cannot Be Placed On The Complainant To Prove The Debt: SC [Read Order]
5 years, 5 months ago

Negotiable Instruments Act: Heavy Burden Cannot Be Placed On The Complainant To Prove The Debt: SC [Read Order]

Live Law  

The Supreme Court has reiterated that while dealing with a complaint filed under Section 138 of the Negotiable Instruments Act, heavy burden cannot be placed on the complainant to prove the debt.In this case, the magistrate dismissed the complaint on the ground that the complainant has failed to prove that the cheque which. The Supreme Court has reiterated that while …

Dishonour Of Cheques: 14 Latest Supreme Court Judgments
5 years, 6 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 …

Section 138 NI Act: Notice Demanding 'Loan Amount' Not Invalid If It Is Same As 'Cheque Amount': SC [Read Order]
5 years, 8 months ago

Section 138 NI Act: Notice Demanding 'Loan Amount' Not Invalid If It Is Same As 'Cheque Amount': SC [Read Order]

Live Law  

The Supreme Court has observed that a demand notice issued under Section 138 of the Negotiable Instruments Act, claiming 'loan amount', does not become invalid, if it is same as the amount covered under the dishonoured cheque. Before the Apex Court, the accused, relying upon clause of the proviso to Section 138 of the NI Act, contended that the demand …

NI Act- Once The Presumption Under Sec.139 Is Drawn, Complainant Need Not Prove Source Of Fund Till Accused Discharges His Burden [Read Judgment]
5 years, 9 months ago

NI Act- Once The Presumption Under Sec.139 Is Drawn, Complainant Need Not Prove Source Of Fund Till Accused Discharges His Burden [Read Judgment]

Live Law  

The Supreme Court has held that once the court has drawn presumption of existence of legally enforceable debt as per Section 139 of the Negotiable Instruments Act, factors like source of funds are not relevant if the accused has not been able to rebut the presumption. "When such a presumption is drawn, the factors relating to the want of documentary …

Negotiable Instruments (Amendment) Bill: Addressing Dispute Over Cheque Bounce Cases
7 years ago

Negotiable Instruments (Amendment) Bill: Addressing Dispute Over Cheque Bounce Cases

Live Law  

The Negotiable Instruments (Amendment) Bill of 2017 aims to reduce the delay in proceedings pertaining to dishonour of cheques and provide interim relief to the payee in such cases. The bill inserts a new Section 143A in the Act of 1881, making provision for the payment by the drawer of the dishonoured cheque to the payee thereof of interim compensation …

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