S 138 NI Act: Treat Service Of Summons In One Complaint As Deemed Service In All Complaints Arising Out Of Same Transaction – Bombay High Court Issues Guidelines
3 years, 2 months ago

S 138 NI Act: Treat Service Of Summons In One Complaint As Deemed Service In All Complaints Arising Out Of Same Transaction – Bombay High Court Issues Guidelines

Live Law  

Pursuant to Supreme Court's directions issued last year regarding expeditious trials in cases filed under section 138 of the Negotiable Instruments Act related cheque bouncing cases, the Bombay High Court has issued a circular setting out the following guidelines: 1.Magistrates trying offences under the NI Act convert a complaint under section 138 of the NI Act from summary trial to summons trial only after recording cogent and sufficient reasons. 2.If the accused in a section 138 case resides beyond the territorial jurisdiction of the magistrate, an inquiry must be conducted before proceeding against the accused as prescribed under section 202 of Cr.P.C. 5.Trial Court shall treat service of summons in one complaint under section 138 of the N.I. Act forming part of a transaction, as deemed service in respect of all complaints filed before the same Court relating to the dishonor of cheques issued as a part of the same transaction.

Trial Court Complaint Act 138  trial  crpc  ni  transaction  court  service  issues  inquiry  s  magistrate  high  guidelines  deemed  act  issued  treat  138  summons

History of this topic

Section 141 NI Act | Executive Director Can't Be Prosecuted For Cheque Dishonour If Company Isn't Made An Accused: Orissa HC Reaffirms
1 week, 4 days ago

Section 141 NI Act | Executive Director Can't Be Prosecuted For Cheque Dishonour If Company Isn't Made An Accused: Orissa HC Reaffirms

Live Law  

The Orissa High Court has reiterated that the Executive Director of a company is not vicariously liable and cannot be prosecuted under Section 138 of the Negotiable Instruments Act for dishonour of cheque, issued by him in his official capacity on behalf of the company, if the company itself is not arraigned as an accused. Highlighting the non-compliance of the …

No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court
1 week, 4 days 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
1 week, 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 …

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

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

Live Law  

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

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore
1 month, 4 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, 4 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 Of NI Act Warrants Strict Construction, Compliance With Proviso Clauses Is A Precondition Before Prosecution: J&K High Court
2 months 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 …

S.138 NI Act | Trial Can Proceed In Absence Of Accused If He Neither Enters Appearance Nor Seeks Exemption From Personal Attendance: Bombay HC
2 months ago

S.138 NI Act | Trial Can Proceed In Absence Of Accused If He Neither Enters Appearance Nor Seeks Exemption From Personal Attendance: Bombay HC

Live Law  

The Bombay High Court has observed that a Magistrate is justified in proceeding with a trial for the offence under Section 138 of the Negotiable Instruments Act in the absence of the accused and without recording a statement under Section 313 CrPC, if the accused or their advocate has not been attending the trial or the accused has not sought …

Section 143A NI Act | Interim Compensation To Complainant In Cheque Bounce Case Introduced In 2018 Amendment Is Prospective: Rajasthan HC
2 months, 1 week 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.142 NI Act | Improper To Dismiss/Quash Cheque Dishonour Complaint Of Company At Threshold On Question Of Authorisation : Supreme Court
2 months, 3 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, 4 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, 1 week 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, 4 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
5 months 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 …

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, 3 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 …

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC
8 months, 2 weeks ago

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC

Live Law  

The Jharkhand High Court has dismissed a petition to quash a cheque bounce case, emphasizing that determining whether the petitioner had settled the debt for which the cheques were issued is a factual matter requiring a full trial. Justice Anil Kumar Choudhary, presiding over the case, observed, “Now whether or not the petitioner has discharged the debt for which the …

S.138 NI Act - Cheque Dishonour Complaint Can't Be Transferred At The Instance Of Accused : Supreme Court
9 months 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
10 months 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 | Courts Can't Compel Complainant To Give Consent For Compounding, Mere Repayment Won't Absolve Accused : Supreme Court
10 months, 4 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, …

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 | 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 …

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 …

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, …

S.138 NI Act | Offence Can Be Compounded At Initial Stage Without Complainant's Consent, Provided They Are Duly Compensated
1 year, 3 months 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 …

Before Issuing Summons U/S 138 NI Act, Only Prima Facie View On Presence Of Basic Ingredients Of The Offence Necessary: Delhi High Court
1 year, 4 months ago

Before Issuing Summons U/S 138 NI Act, Only Prima Facie View On Presence Of Basic Ingredients Of The Offence Necessary: Delhi High Court

Live Law  

Justice Amit Bansal of the Delhi High Court recently upheld summoning orders passed in a complaint case u/s 138 Negotiable Instruments Act, observing that evidence need not be gone into by the MM while conducting inquiry u/s 202 Cr.P.C. “At the stage of issuance of summons, for the purpose of Section 202 of the CrPC read with section 145 of …

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 …

Supreme Court Annual Digest 2022- Negotiable Instruments Act
2 years, 2 months ago

Supreme Court Annual Digest 2022- Negotiable Instruments Act

Live Law  

Negotiable Instruments Act, 1881 Section 3 - Banker Negotiable Instruments Act, 1881 - Section 3 - ‘Banker’ includes any person acting as a banker and any post office savings bank. Pradeep Kumar v. Post Master General, 2022 LiveLaw 139 : 6 SCC 351 Section 13 - “Negotiable instrument” Negotiable Instruments Act, 1881 - Section 13 - Different principles apply for …

Merely Being Signatory To A Cheque Does Not Make A Person Guilty Of Offence Under Section 138 NI Act: Delhi High Court
2 years, 3 months ago

Merely Being Signatory To A Cheque Does Not Make A Person Guilty Of Offence Under Section 138 NI Act: Delhi High Court

Live Law  

The Delhi High Court has said that prima facie, merely being a signatory to a cheque does not, in itself, make a person guilty of the offence under Section 138 of the Negotiable Instruments Act.Observing that the offence is triggered at the stage when a cheque is returned unpaid by the bank for insufficiency of funds, Justice Anup Jairam Bhambhani …

Section 138 NI Act | Infirmity In Cheque Return Memo Does Not Render Entire Trial As Nullity: Delhi High Court
2 years, 4 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 …

S.138 NI Act | Production Of Original Power of Attorney Not Necessary At Time Of Taking Cognizance Of Complaint: J&K&L High Court
2 years, 5 months ago

S.138 NI Act | Production Of Original Power of Attorney Not Necessary At Time Of Taking Cognizance Of Complaint: J&K&L High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court on Friday ruled that the production of original Power of Attorney is not necessary at the time of taking cognizance of the complaint under Section 138 of Negotiable Instruments Act.The observations were made by Justice Sanjay Dhar while hearing a plea in which the petitioner had challenged a complaint filed by respondent …

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 …

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 …

S.138 NI Act | Non-Executive Directors Not Liable For Company's Actions/ Omissions Unless Involved In Day-To-Day Affairs: Bombay High Court
2 years, 8 months ago

S.138 NI Act | Non-Executive Directors Not Liable For Company's Actions/ Omissions Unless Involved In Day-To-Day Affairs: Bombay High Court

Live Law  

The Bombay High Court has quashed criminal proceedings against independent non-executive directors of Tecpro Systems Ltd while stating that they were not responsible for day-to-day functioning of the company. Elektromag Devices Private Ltd. Elektromag had filed a complaint under Section 138 of NI Act against Tecpro Systems, a material handling company, alleging that the cheque worth almost Rs. The court …

Court Must Give Notice To Accused, Hear Him Before Condoning Delay In Filing Complaint U/S 138 NI Act: Tripura High Court
2 years, 9 months ago

Court Must Give Notice To Accused, Hear Him Before Condoning Delay In Filing Complaint U/S 138 NI Act: Tripura High Court

Live Law  

The Tripura High Court has made it clear that a court is required to issue notice to the accused and hear him before condoning the delay in filing a complaint under Section 138 of the Negotiable Instruments Act. ".under Section 138 of the NI Act, if the original complaint is filed after the expiry of the statutory period, then, in …

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, 10 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 …

Sec 138 NI Act- Set Up Pilot Courts With Retired Judges For Cheque Bounce Cases In 5 States With Highest Pendency : Supreme Court
2 years, 10 months ago

Sec 138 NI Act- Set Up Pilot Courts With Retired Judges For Cheque Bounce Cases In 5 States With Highest Pendency : Supreme Court

Live Law  

With a view of reduce the pendency of cheque bounce cases under Section 138 of the Negotiable Instruments Act, the Supreme Court on Thursday directed the establishment of pilot courts presided over by retired judges in 5 districts of 5 states with the highest pendency. Number of Courts: 25 Special Court in total Presiding Officers and Staff: Retired Judicial officer …

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, 11 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 …

If Ground Of Delay In Filing S.138 NI Act Complaint Is Raised For First Time In Appeal, Case May Be Remanded Back For Consideration U/S 142(b): Karnataka HC
2 years, 11 months ago

If Ground Of Delay In Filing S.138 NI Act Complaint Is Raised For First Time In Appeal, Case May Be Remanded Back For Consideration U/S 142(b): Karnataka HC

Live Law  

The Karnataka High Court has said that if a party, opposing the proceedings instituted under Section 138 of the Negotiable Instruments Act, fails to raise the ground of delay in filing the complaint before the court of first instance, the Court in Appeal is empowered to remand the matter back for fresh consideration on the issue of condonation of delay …

Section 138 NI Act - Prima Facie Indication That Complaint Is Filed By Authorized Person Of Company Sufficient For Magistrate To Take Cognisance : Supreme Court
3 years, 1 month 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, 3 months ago

2021 Supreme Court Digest On Negotiable Instruments Act

Live Law  

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

Complaint U/S 138 NI Act- "Accused Can Be Summoned Even On The Basis Of Affidavit Filed By Complainant": Allahabad HC
3 years, 3 months ago

Complaint U/S 138 NI Act- "Accused Can Be Summoned Even On The Basis Of Affidavit Filed By Complainant": Allahabad HC

Live Law  

The Allahabad High Court on Wednesday observed that in a cheque bounce case for insufficient funds, even on the basis of affidavit filed on behalf of the complainant, an accused can be summoned by the Court.The Bench of Justice Sameer Jain further held that in such cases, there is no need for the Magistrate to record statements of witnesses under. …

Section 202(2) CrPC Inapplicable To Complaints Under Section 138 NI Act In Respect Of The Examination Of Witnesses On Oath: Supreme Court
3 years, 3 months ago

Section 202(2) CrPC Inapplicable To Complaints Under Section 138 NI Act In Respect Of The Examination Of Witnesses On Oath: Supreme Court

Live Law  

The Supreme Court reiterated that the Section 202 CrPC is inapplicable to complaints under Section 138 in respect of the examination of witnesses on oath. "If the Magistrate holds an inquiry himself, it is not compulsory that he should examine witnesses and in suitable cases the Magistrate can examine documents to be satisfied that there are sufficient grounds for proceeding …

Section 138 NI Act - Summons To Directors Justified If Complaint Avers That They Were In Charge & Responsible For Conduct Of Business Of Company : Supreme Court
3 years, 5 months ago

Section 138 NI Act - Summons To Directors Justified If Complaint Avers That They Were In Charge & Responsible For Conduct Of Business Of Company : Supreme Court

Live Law  

The Supreme Court has reiterated that the summons issued by a Magistrate on a complaint under Section 138 of the Negotiable Instruments Act to the Directors of a Company is justified if the complaint contains the basic averment that they were in charge and responsible for the conduct of the business of the company.A bench comprising Justices Ajay Rastogi and …

Section 138 NI Act: Complaint Cannot Be Proceeded With Once The Accused And Complainant Enter Into A Settlement Agreement: Supreme Court
3 years, 5 months ago

Section 138 NI Act: Complaint Cannot Be Proceeded With Once The Accused And Complainant Enter Into A Settlement Agreement: Supreme Court

Live Law  

The Supreme Court observed that a complaint under Section 138 of Negotiable Instruments Act cannot be proceeded with once the accused and the complainant enter into a settlement agreement.The bench headed by Justice DY Chandrachud observed that non-compliance of the terms of the settlement agreement or dishonour of cheques issued subsequent to it, would then give rise to a fresh …

Cognizance Of Section 138 NI Act Offence By Magistrate Will Not Automatically Result In Decree In Civil Suit For Cheque Dishonour : Delhi High Court
3 years, 7 months ago

Cognizance Of Section 138 NI Act Offence By Magistrate Will Not Automatically Result In Decree In Civil Suit For Cheque Dishonour : Delhi High Court

Live Law  

The Delhi High Court has held that if the Metropolitan Magistrate takes cognizance of an offense under Section 138 of the Negotiable Instrument Act, 1881, it is not that a decree against the respondent/defendant will follow automatically.The Court rejected the argument that that mere cognizance of an offence by a MM in Section 138 NI Act proceedings should automatically lead …

Section 138 NI Act- Jharkhand High Court Explains Bouncing Of Non-MICR Cheques, Notice Under Certificate of Posting
3 years, 8 months ago

Section 138 NI Act- Jharkhand High Court Explains Bouncing Of Non-MICR Cheques, Notice Under Certificate of Posting

Live Law  

The Jharkhand High Court last week made some pertinent observations regarding the essentials required for prosecution under Section 138 of the Negotiable Instruments Act, 1881 for the bouncing of non-MICR cheques. Issue 2: Whether the dispatch of demand notice under certificate of posting can be said to be a valid mode of service under the provisions of Section 138 of …

Section 138 NI Act- Not Mentioning Date Of Service Of Demand Notice Is Not Fatal To Case: Allahabad High Court
3 years, 9 months ago

Section 138 NI Act- Not Mentioning Date Of Service Of Demand Notice Is Not Fatal To Case: Allahabad High Court

Live Law  

The Allahabad High Court has held that a complaint for dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881, cannot be dismissed merely because it does not mention the date on which the demand notice was served upon the alleged defaulter/ drawer. "When the notice is sent by registered post by correctly addressing the drawer of the …

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