Negotiable Instruments Act Does Not Classify Cheques As Bearer Or Account Payee; Jurisdiction Lies Where Cheque Is Delivered For Collection: Gauhati HC
2 years, 7 months ago

Negotiable Instruments Act Does Not Classify Cheques As Bearer Or Account Payee; Jurisdiction Lies Where Cheque Is Delivered For Collection: Gauhati HC

Live Law  

The Gauhati High Court has made it clear that in offences made out under Section 138 of the Negotiable Instruments Act, the territorial jurisdiction of the Court will be where the cheque is delivered for collection. Justice Robin Phukan further added that no classification of cheque, as bearer or cross cheque/account payee cheque is made in the NI Act, for the purpose of jurisdiction."From. Justice Robin Phukan further added that no classification of cheque, as bearer or cross cheque/account payee cheque is made in the NI Act, for the purpose of jurisdiction. Disagreeing with this proposition, the High Court held that a cursory perusal of Section 142 NI Act makes it abundantly clear that no classification of cheque, as bearer or cross cheque/account payee cheque is made thereunder.

Court Negotiable Instruments Act Act Account Bearer Petitioner Section 138 Cheque Hojai Payee Jurisdiction Hojai Branch  delivered  hc  account  cheque  negotiable  gauhati  court  hojai  lies  act  payee  jurisdiction  collection  instruments  does  bearer  ni  petitioner

History of this topic

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 | 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 Attracted Even In Cases Where Debt Is Incurred After Cheque Is Drawn But Before Presentation: Supreme Court
3 years, 3 months 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 …

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 …

Offence Under SEC.138 NI Act Is Person Specific. Concept Of ‘Taking Cognizance Of The Offence And Not The Offender’ Not Appropriate In Cheque Cases: SC [Read Judgment]
7 years, 6 months ago

Offence Under SEC.138 NI Act Is Person Specific. Concept Of ‘Taking Cognizance Of The Offence And Not The Offender’ Not Appropriate In Cheque Cases: SC [Read Judgment]

Live Law  

The Supreme Court has pronounced a point of law that the offence under Section 138 of Negotiable Instruments Act is person specific. It was held as follows : "By the nature of the offence under Section 138 of THE ACT, the first ingredient constituting the offence is the fact that a person drew a cheque. Therefore, in the context of …

Offence Under SEC.138 NI Act Is Person Specific. Concept Of ‘Taking Cognizance Of The Offence And Not The Offender’ Not Appropriate In Cheque Cases: SC [Read Judgment]
7 years, 6 months ago

Offence Under SEC.138 NI Act Is Person Specific. Concept Of ‘Taking Cognizance Of The Offence And Not The Offender’ Not Appropriate In Cheque Cases: SC [Read Judgment]

Live Law  

The Supreme Court has pronounced a point of law that the offence under Section 138 of Negotiable Instruments Act is person specific. It was held as follows : "By the nature of the offence under Section 138 of THE ACT, the first ingredient constituting the offence is the fact that a person drew a cheque. Therefore, in the context of …

Security Cheques per se would not get out of the ambit of Section 138 of the NI Act; Delhi HC
9 years, 6 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 …

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 …

Discover Related