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 case, we are of the view that once the settlement has been arrived at and the complainant has signed the deed accepting a particular amount in full and final settlement of the default amount and the fine amount awarded by the Trial Court, the proceedings under Section 138 of the NI Act need to be quashed," observed the bench of Justices Vikram Nath and Satish Chandra Sharma. As per this deed, the respondent-complainant agreed to accept a certain amount as full and final settlement of the cheque amount and the fine imposed by the Trial Court and confirmed by the High Court. Case Title: GHANSHYAM GAUTAM vs. USHA RANI THROUGH L.R.S RAVI SHANKAR., Diary No.- 8428 - 2018 Citation : 2024 LiveLaw 23 Click here to read/ download the order

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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
4 days, 10 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
5 days 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 …

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation
2 weeks, 3 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 …

Negotiable Instruments Act: All India Annual Digest 2024
1 month, 1 week ago

Negotiable Instruments Act: All India Annual Digest 2024

Live Law  

Director of the company not responsible for its day-to-day affairs cannot be held liable for dishonour of cheque. The court said, “It is pertinent to note that said Prabhakar is not even examined on behalf of the accused, nor any material like counterfoil or cheque issuing register is placed on record so as to establish that the cheque has been …

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 …

Execution Proceedings Can't Be Quashed Solely Due To Non-Supply Of Signed Arbitral Award: Chhattisgarh High Court
1 month, 1 week ago

Execution Proceedings Can't Be Quashed Solely Due To Non-Supply Of Signed Arbitral Award: Chhattisgarh High Court

Live Law  

The Chhattisgarh High Court bench of Justice Rakesh Mohan Pandey has held that non-supply of the signed arbitral award may be a ground for setting aside an award, but on this ground alone, the execution proceedings cannot be quashed. The respondent Bank filed an application for execution under Section 36 of the Arbitration and Conciliation Act, 1996 read with Order …

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] While Considering Suspension Of Sentence, Court Must See If Case Falls Under Any Exceptions: Andhra Pradesh HC Reiterates
2 months, 1 week ago

[S.138 NI Act] While Considering Suspension Of Sentence, Court Must See If Case Falls Under Any Exceptions: Andhra Pradesh HC Reiterates

Live Law  

The Andhra Pradesh High Court has reiterated that a plea for suspension of sentence is generally sought without any conditions, and when an accused seeks a blanket order like this, the responsibility is cast on the Court to determine whether the case falls under an exception. the high court said, “The Appellate Court in the impugned order referred to the …

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal
2 months, 1 week 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.142 NI Act | Improper To Dismiss/Quash Cheque Dishonour Complaint Of Company At Threshold On Question Of Authorisation : Supreme Court
2 months, 2 weeks ago

S.142 NI Act | Improper To Dismiss/Quash Cheque Dishonour Complaint Of Company At Threshold On Question Of Authorisation : Supreme Court

Live Law  

The Supreme Court today, reiterated that in the dishonour of cheque cases, where complainant is a company, it is necessary to show during the trial that the complaint, if not filed by the payee, is filed by someone having knowledge of complainant's contents. "When the company is the payee of the cheque based on which a complaint is filed under …

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 …

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, 1 week 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
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. …

Proceedings U/S 138 N.I. Act Justified In Cases Arising From Commercial Transactions Regardless Of Their Civil Nature: J&K High Court
7 months, 2 weeks ago

Proceedings U/S 138 N.I. Act Justified In Cases Arising From Commercial Transactions Regardless Of Their Civil Nature: J&K High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court has ruled that proceedings under Section 138 of the Negotiable Instruments Act are justified in cases stemming from commercial transactions, regardless of the civil nature of the underlying transaction. Chapter XVII of the Negotiable Instruments Act, which outlines penalties for cheque dishonour due to insufficient funds would apply to bolster the reliability …

Proceedings For Cheque Dishonour U/s. 138 NI Act Do Not Constitute Continuing Cause Of Action To Initiate Arbitration: Supreme Court
8 months ago

Proceedings For Cheque Dishonour U/s. 138 NI Act Do Not Constitute Continuing Cause Of Action To Initiate Arbitration: Supreme Court

Live Law  

The Supreme Court recently observed that initiation of proceedings under the Negotiable Instruments Act, 1881 for cheque dishonour does not constitute continuing cause of action for initiating arbitration under the Arbitration and Conciliation Act, 1996. Therefore, the institution of the proceedings under Section 138 does not imply a 'continuing cause of action' for the purpose of initiating arbitration, as erroneously …

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 …

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 | Supreme Court Sets Aside HC Decision Allowing Amendment Of Cheque Date Mentioned In Complaint
10 months, 2 weeks 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
10 months, 3 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, 1 month 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] Must Examine Those With Direct Knowledge Of Transaction To Prove Allegations Of Cheque Dishonour: Kerala High Court Sets Aside Conviction
1 year, 1 month ago

[S.138 NI Act] Must Examine Those With Direct Knowledge Of Transaction To Prove Allegations Of Cheque Dishonour: Kerala High Court Sets Aside Conviction

Live Law  

The Kerala High Court has stated that the prosecution has to examine a witness who had direct knowledge regarding the transaction, issuance and execution of the cheque to prove dishonour of the cheque. Justice A. Badharudeen observed that the examination of a witness who had no direct knowledge regarding the transaction or issuance of the cheque would be insufficient to …

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 …

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 …

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, …

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 …

Not Proper To Shift Burden On Complainant To Prove NI Act Case Beyond ‘Reasonable Doubt’ When Accused Didn’t Respond To Statutory Notice: Gujarat High Court
1 year, 10 months ago

Not Proper To Shift Burden On Complainant To Prove NI Act Case Beyond ‘Reasonable Doubt’ When Accused Didn’t Respond To Statutory Notice: Gujarat High Court

Live Law  

While allowing a leave to appeal against acquittal in a criminal case under Section 138 of the N.I. Act, the Gujarat High Court said the Magistrate's approach in shifting the burden upon the complainant to prove his case beyond reasonable doubt was not proper “when the accused has chosen not to question the financial capacity of complainant at very first …

Order XXIII Rule 3 CPC Cannot Be Imported To Deal With Complaints U/S 138 Negotiable Instruments Act: Jammu & Kashmir High Court
1 year, 11 months ago

Order XXIII Rule 3 CPC Cannot Be Imported To Deal With Complaints U/S 138 Negotiable Instruments Act: Jammu & Kashmir High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court has recently ruled that the provisions of Order XXIII Rule 3 of the CPC cannot be imported to deal with a complaint under Section 138 of the Negotiable Instruments Act. A bench of Justice Javed Iqbal Wani observed that Section 138 of the Act is quasi-criminal and, "The Magistrate could not have …

[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 …

Plea To Quash S.138 NI Act Conviction Not Maintainable U/S 482 CrPC: Karnataka High Court
2 years, 1 month ago

Plea To Quash S.138 NI Act Conviction Not Maintainable U/S 482 CrPC: Karnataka High Court

Live Law  

The Karnataka High Court has said that a petition filed under Section 482 of the Criminal Procedure Code, seeking to quash conviction handed down to an accused under the Negotiable Instruments Act is not maintainable. Therefore, the High Court can entertain Section 482 of Cr.P.C, if the complaint is dismissed for non-prosecution or dismissed for default under section 256 of …

S.138 NI Act | Complainant's Consent Not Necessary For Compounding Case When He Is Duly Compensated: Himachal Pradesh High Court
2 years, 2 months ago

S.138 NI Act | Complainant's Consent Not Necessary For Compounding Case When He Is Duly Compensated: Himachal Pradesh High Court

Live Law  

The Himachal Pradesh High Court recently held that it can compound a case registered under the provisions of the Negotiable Instrument Act, even in absence of consent of the complainant, where the complainant is duly compensated. The observations came from Justice Vivek Singh Thakur while hearing a plea in terms of which the petitioner had challenged Sessions Court's order, upholding …

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 …

Supreme Court Quashes Criminal Proceedings As Complainant Availed Civil Remedy ; Clarifies This Order Not to Be Treated As Precedent
2 years, 3 months ago

Supreme Court Quashes Criminal Proceedings As Complainant Availed Civil Remedy ; Clarifies This Order Not to Be Treated As Precedent

Live Law  

The Supreme Court, in an judgment passed yesterday, quashed criminal proceedings against an accused in a cheating case after noticing that the complainant in fact availed civil remedy.The court however clarified that this order in the facts and circumstances of the present case and the same shall not be cited as a precedent.In this case, the complainant alleged that his …

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 …

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 …

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.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 Disapproves Entertaining Of Writ Petitions For Executing Arbitration Awards Against NHAI: Supreme Court
2 years, 6 months ago

Supreme Court Disapproves Entertaining Of Writ Petitions For Executing Arbitration Awards Against NHAI: Supreme Court

Live Law  

The Supreme Court disapproved the entertaining of writ petitions seeking execution of Arbitration awards passed against National Highways Authority of India. "If the High Courts convert itself to the Executing Court and entertain the writ petitions under Article 226 of the Constitution of India to execute the award passed by the Arbitral Tribunal/Court, the High Courts would be flooded with …

S.143A NI Act | Court Not Obliged To Direct Payment Of Interim Compensation In Cheque Bounce Cases: Bombay High Court
2 years, 7 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 …

Cases Of Civil Nature Can Be 'Quashed' In Interest Of Justice: Gujarat High Court Reiterates Distinction B/w Sections 320 & 482 CrPC
2 years, 7 months ago

Cases Of Civil Nature Can Be 'Quashed' In Interest Of Justice: Gujarat High Court Reiterates Distinction B/w Sections 320 & 482 CrPC

Live Law  

While allowing a revision application under Section 397 of CrPC seeking quashing of a judgement convicting the Petitioner under Section 138 of Negotiable Instruments Act, the Gujarat High Court reiterated the distinction between Sections 482 and Sec 320 of the Code. It reiterated: "In compounding of offences, power of a criminal court is circumscribed by the provisions contained in Section …

The Writ Not Maintainable Against An Order Of The Arbitrator Dismissing An Application For Interrogatories: Himachal Pradesh High Court
2 years, 9 months ago

The Writ Not Maintainable Against An Order Of The Arbitrator Dismissing An Application For Interrogatories: Himachal Pradesh High Court

Live Law  

The Himachal Pradesh High Court has held that a writ petition would be non-maintainable against an order of the arbitrator dismissing the application for interrogatories. Observation By The Court The Court relied on the judgment of the Hon'ble Supreme Court in SBP & CO. v. Patel Engineering, Deep Industries v. ONGC and Bhaven Construction v. Sardar Sarovar Narmada Nigam Ltd. …

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