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 of Section 138 of Negotiable Instruments Act, it is clear that if any invalid cheque is presented before the Bank and the same was dishonoured, then no liability under Section 138 N.I. Act would be attracted, and the cheque of Allahabad Bank is invalid after 30.09.2021 after the merging of Allahabad Bank into the Indian Bank on 01.04.2020. On the other hand, the counsel for the opposite party and AGA contended that if the applicant was aware that the cheque had been declared invalid due to the merger of Allahabad Bank into Indian Bank, issuing this cheque would constitute an attempt to deceive the opposing party.

Act 138 Cheque Banks Bank Indian Bank Invalid  allahabad  138  banks  bank  offence  party  invalid  cheques  cheque  dishonour  act  hc  erstwhile  ni

History of this topic

Criminal Liability For Cheque Dishonour Primarily On Drawer Company, Officers Are Held Liable Only If Section 141 Is Satisfied: Gujarat HC
1 month 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, 2 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, 2 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 …

Cognizance Of Cheque Dishonour U/S 138 NI Act Can Be Taken Only Upon A Written Complaint: Jharkhand High Court Reiterates
3 months, 3 weeks 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 …

Allahabad High Court Weekly Roundup: June 10 - June 16, 2024
8 months, 2 weeks ago

Allahabad High Court Weekly Roundup: June 10 - June 16, 2024

Live Law  

NOMINAL INDEX Mamta Kapoor and Another v. Vinod Kumar Rai 2024 LiveLaw 382 Naziya Ansari And Another vs. State Of Up And 2 Others 2024 LiveLaw 383 Archana Singh Gautam vs. State of U.P. and Another 2024 LiveLaw 394 Orders/Judgments of the Week Disputes Related To Immovable Property Used Exclusively For Trade Are 'Commercial Disputes: Allahabad High Court Case Title: …

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC
9 months, 2 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 …

Can SC Transfer Cheque Dishonour Case To Jurisdiction Where Drawer's Bak Is Situated Despite S.142A NI Act? Supreme Court To Consider
10 months, 2 weeks ago

Can SC Transfer Cheque Dishonour Case To Jurisdiction Where Drawer's Bak Is Situated Despite S.142A NI Act? Supreme Court To Consider

Live Law  

The Supreme Court on Wednesday decided to implead the Union of India as a party to the proceedings that involve the interpretation and consideration of consequences of the amendment made to Section 142A of the Negotiable Instruments Act.“Taking note of the fact that issue involved requires interpretation and also consideration of consequence of the amendment made to Section 142A. The …

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 …

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 …

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, 6 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 …

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 …

Cheque Rule Change: Cheque Book of these Banks will not Work from Next Month
3 years, 6 months ago

Cheque Rule Change: Cheque Book of these Banks will not Work from Next Month

News 18  

Punjab National Bank had issued a tweet on Wednesday, alerting its customers and account holders of a new change. From next month onwards the bank has stated that the existing cheque books of the Oriental Bank of Commerce and United Bank of India will be discontinued. The bank stated that you can apply for your new cheque book through either …

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, 8 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: 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 …

Centre Proposes Decriminalization Of Cheque Dishonour Under Sec 138 NI Act, Other Economic Offences; Seeks Public Comments
4 years, 9 months ago

Centre Proposes Decriminalization Of Cheque Dishonour Under Sec 138 NI Act, Other Economic Offences; Seeks Public Comments

Live Law  

The Ministry of Finance has proposed decriminalizaiton of several economic offences, including the offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act, and has invited comments from all stakeholders on this.The Ministry has said that this move is with the aim of "improving business sentiment and unclogging court processes" in the wake of economic crisis caused. …

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 …

Complaint U/s 138 NI Act Maintainable Against Dishonour Of Cheque Issued Pursuant To Lok Adalat Award: SC [Read Order]
5 years, 4 months ago

Complaint U/s 138 NI Act Maintainable Against Dishonour Of Cheque Issued Pursuant To Lok Adalat Award: SC [Read Order]

Live Law  

The Supreme Court has observed that a complaint under Section 138 of the Negotiable Instruments Act for dishonor of a cheque issued pursuant to the Lok Adalat award is maintainable. In appeal filed by the complainant, the Apex Court bench comprising of Justice Indira Banerjee and Justice MR Shah noted that in Lalit Kumar Sharma case, the cheque had not …

Dishonour Of Cheques: 14 Latest Supreme Court Judgments
5 years, 8 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 …

Complaint Under Section 138 NI Act Maintainable Against Dishonour Of Cheques Issued In Pursuance Of Agreement For Sale: SC [Read Judgment]
5 years, 11 months ago

Complaint Under Section 138 NI Act Maintainable Against Dishonour Of Cheques Issued In Pursuance Of Agreement For Sale: SC [Read Judgment]

Live Law  

The Supreme Court has observed that a complaint under Section 138 of the Negotiable Instruments Act is maintainable when there is dishonour of cheques issued under and in pursuance of the agreement to sell. The accused moved the High Court which quashed the complaint holding that cheques had not been issued for creating any liability or debt but for the …

S.138 NI Act Offence Attracted Even If Cheque Issued For Sale Consideration Not Disclosed in Sale Deed:Delhi HC [Read Judgment]
6 years, 8 months ago

S.138 NI Act Offence Attracted Even If Cheque Issued For Sale Consideration Not Disclosed in Sale Deed:Delhi HC [Read Judgment]

Live Law  

The Delhi High Court has held that offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act is attracted even if the cheque was issued in respect of sale consideration which was not disclosed in the sale deed. The trial court noted that even though the complainant stated the sale consideration to be Rs.20 lakhs, the value …

Dishonour Of Cheque Issued As Security For Repayment Of Loan Covered U/S 138 Of NI Act: SC [Read Judgment]
8 years, 5 months ago

Dishonour Of Cheque Issued As Security For Repayment Of Loan Covered U/S 138 Of NI Act: SC [Read Judgment]

Live Law  

Crucial question to determine applicability of Section 138 of the Act is whether the cheque represents discharge of existing enforceable debt or liability or whether it represents advance payment without there being subsisting debt or liability, the Bench said. The Supreme Court on Monday held the dishonour of a post-dated cheque given for repayment of loan installment, which is also …

Security Cheques per se would not get out of the ambit of Section 138 of the NI Act; Delhi HC
9 years, 5 months ago

Security Cheques per se would not get out of the ambit of Section 138 of the NI Act; Delhi HC

Live Law  

The Delhi High Court in Wilson Mathew v. State dated 15.9.2015 has held that Security cheques per se would not get out of the ambit of Section 138 of the NI Act.Justice Ashutosh Kumar who wrote the Judgment relied on Suresh Chand Goyal vs. Amit Singhal in which it is held as follows;There is no magic in the word "security …

“Cheque reported lost”: Offence under Section 138 NI Act not attracted, holds the Kerala High Court
9 years, 7 months ago

“Cheque reported lost”: Offence under Section 138 NI Act not attracted, holds the Kerala High Court

Live Law  

Resolving the legal nodus, whether a cheque returned by the bank on the ground “cheque reported lost” will come within the purview of Section 138 of the N.I.Act, the High Court of Kerala speaking through Justice P.D. Rajan has held in a recent judgment that refusal on the part of the bank to honour the cheque on the ground of …

“Cheque reported lost”: Offence under Section 138 NI Act not attracted, holds the Kerala High Court
9 years, 7 months ago

“Cheque reported lost”: Offence under Section 138 NI Act not attracted, holds the Kerala High Court

Live Law  

Resolving the legal nodus, whether a cheque returned by the bank on the ground “cheque reported lost” will come within the purview of Section 138 of the N.I.Act, the High Court of Kerala speaking through Justice P.D. Rajan has held in a recent judgment that refusal on the part of the bank to honour the cheque on the ground of …

Breaking; Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated;...
9 years, 10 months ago

Breaking; Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated;...

Live Law  

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal to introduce the Negotiable Instruments Bill, 2015 in Parliament. The main amendment included in this is the stipulation that the offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the …

A Complaint for Dishonour of Cheque [S.138 NI Act] cannot be quashed on the ground that 'Cheque was issued as Security'; SC [Read the Judgment]
9 years, 11 months ago

A Complaint for Dishonour of Cheque [S.138 NI Act] cannot be quashed on the ground that 'Cheque was issued as Security'; SC [Read the Judgment]

Live Law  

A two Judge Bench of the Supreme Court in HMT Watches Ltd. Vs. Abida it is held that a complaint filed U/S 138 of Negotiable Instrument Act for 'dis-honour of Cheque' cannot be quashed by High Court on the ground that 'Cheque was issued as Security', invoking the power U/S 482 of Criminal Procedure Code.While reversing a Judgment from High …

A Complaint for Dishonour of Cheque [S.138 NI Act] cannot be quashed on the ground that 'Cheque was issued as Security'; SC [Read the Judgment]
9 years, 11 months ago

A Complaint for Dishonour of Cheque [S.138 NI Act] cannot be quashed on the ground that 'Cheque was issued as Security'; SC [Read the Judgment]

Live Law  

A two Judge Bench of the Supreme Court in HMT Watches Ltd. Vs. Abida it is held that a complaint filed U/S 138 of Negotiable Instrument Act for 'dis-honour of Cheque' cannot be quashed by High Court on the ground that 'Cheque was issued as Security', invoking the power U/S 482 of Criminal Procedure Code.While reversing a Judgment from High …

Dis-honour of Cheques issued by Purchasers as Advance Payment, does not amount an Offence as there is no legally enforceable debt; SC
10 years, 11 months ago

Dis-honour of Cheques issued by Purchasers as Advance Payment, does not amount an Offence as there is no legally enforceable debt; SC

Live Law  

In a Judgment which would make far reaching consequences in thousands of pending cheque bouncing cases in the Country, Supreme Court of India yesterday held that post-dated cheques issued by the purchasers as an advance payment in respect of purchase orders cannot be considered in discharge of legally enforceable debt or other liability, and the dishonour of such cheques does …

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