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 other association of individuals, therefore, not only a corporate entity either private, or, public limited becomes a 'Company', for the purpose of application thereons of Section 141 of 'the Act', but also a firm, or, other association of individuals, do also, become covered by Section 141 of 'the Act', besides a partner in a firm when is given the colour of a Director of a firm, also does become covered for the relevant purpose. However, a close reading of the above memo of parties, appertaining to the extant complaint, reveals that the sole proprietary concern, inasmuch as, M/s Thind Traders has not been arrayed as an accused, but only its sole proprietor Sardar Bhupinder Singh has been arrayed as an accused. Consequently, it held that when the arraigning of the sole proprietary was a condition precedent for making the complaint well constituted, as it becomes the principal offender, the absence of its impleadment cannot make the instant complaint well constituted, nor, any valid prosecution can in its absence, be drawn, even against the accused petitioner, who can be assigned only a vicarious liability along with it the court added.

Court Accused Complaint Petition Section 141 Sole Proprietor Sole Proprietary Concern Other Association Sole Proprietary  sued  ni  entity  arrayed  complaint  s141  proprietor  court  ph  firm  accused  petition  offence  high  sole  proprietary  petitioner

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
3 days, 19 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
4 days, 10 hours 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 | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court
1 week, 2 days ago

NI Act | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court has said that, to maintain uniformity in imposing fines in cheque bounce cases under the Negotiable Instruments Act, the fine should be equivalent to the amount of the cheque, plus at least 6% interest per annum from the date of the cheque until the date of the judgment of conviction. The Punjab and Haryana …

NI Act Allows Filing Of Cheque Dishonour Complaint At Place Of Payee Bank; Accused Can't Seek Transfer Citing Inconvenience: Supreme Court
Trending News
2 weeks, 1 day 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 …

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

S.141 NI Act | 'Director Who's In Charge Of Company' & 'Director Who's Responsible To Company' Are Different Aspects: Supreme Court
1 month, 1 week ago

S.141 NI Act | 'Director Who's In Charge Of Company' & 'Director Who's Responsible To Company' Are Different Aspects: Supreme Court

Live Law  

The Supreme Court recently observed that there are twin requirements for an offence to fall under Section 141 of the Negotiable Instruments Act, which talks about the dishonour of a cheque committed by a company. Elucidating, the Court said that the accused person should be in charge of and responsible to the company for the conduct of the business. The …

Section 138 NI Act | Mumbai Court Convicts Pharma Company In Cheque Dishonour Case, Imposes Fine Of ₹1.83 Crore
1 month, 3 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, 3 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
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 …

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 …

S.138 NI Act | Director Who Signed Cheque Not Liable For Dishonour When Company Hasn't Been Added As Accused : Supreme Court
2 months, 3 weeks ago

S.138 NI Act | Director Who Signed Cheque Not Liable For Dishonour When Company Hasn't Been Added As Accused : Supreme Court

Live Law  

The Supreme Court reiterated that the authorised signatory of a company cannot be held liable under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque drawn on the company's account unless the company is arraigned as the principal accused. The Sessions Court upheld the conviction, but the Calcutta High Court reversed it, ruling that the cheque …

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 …

[S.138 NI Act] Not Making Company Separate Accused In Cheque Bouncing Complaint Isn't Fatal To Prosecution Case: Jharkhand HC
4 months, 1 week ago

[S.138 NI Act] Not Making Company Separate Accused In Cheque Bouncing Complaint Isn't Fatal To Prosecution Case: Jharkhand HC

Live Law  

A single judge bench of Justice Sanjay Kumar Dwivedi, presiding over the case, remarked, “ From perusal of the complaint petition, the Court finds that although the company has not been made accused separately, but complainant has made the Director as accused who has signed the cheque as an accused and mentioned the company name i.e. The Court noted that …

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 …

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 …

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 | Courts Can't Compel Complainant To Give Consent For Compounding, Mere Repayment Won't Absolve Accused : Supreme Court
10 months, 2 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] 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 …

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 …

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 …

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 …

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC
2 years, 4 months ago

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC

Live Law  

The Karnataka High Court has quashed the proceedings initiated against two former directors of a company under Section 138 of the Negotiable Instruments Act by the complainant claiming that when he invested the money in the company they were directors. A private complaint was filed under Section 200 of the Code of Criminal Procedure, 1973 for the offence punishable under …

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 | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates
2 years, 4 months ago

S.138 NI Act | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates

Live Law  

The Kerala High Court has reiterated that when a cheque issued by a company is dishonored, prosecution under Section 138 of the Negotiable Instruments Act against its Director shall not sustain if the company is not arrayed as an accused. Justice A. Badharudeen relying on the law laid down by the Apex Court, observed that prosecution against the director 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 …

S.138 NI Act | Proprietor & Proprietary Concern Need Not Be Arrayed Separately As Accused: Karnataka High Court
2 years, 5 months ago

S.138 NI Act | Proprietor & Proprietary Concern Need Not Be Arrayed Separately As Accused: Karnataka High Court

Live Law  

The Karnataka High Court has held that a proprietary concern is not a separate entity and as such, ought not to be arrayed as a separate accused in a case registered under section 138 of the Negotiable Instruments Act. A single judge bench of Justice Suraj Govindaraj observed, "In a proceeding under Section 138 of N.I.Act, the arraying of a …

Supreme Court Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881
2 years, 6 months ago

Supreme Court Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881

Live Law  

Code of Criminal Procedure, 1973; Section 482 - Negotiable Instruments Act, 1881; Section 138,139 - The Court should be slow to grant the relief of quashing a complaint at a pre-trial stage, when the factual controversy is in the realm of possibility particularly because of the legal presumption - In a situation where the accused moves Court for quashing even …

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court
2 years, 7 months ago

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court recently held that the service of notice upon the accused in cheque dishonour case cannot be denied in light of Section 27 of the General Clauses Act, which provides a presumption in favour of the complainant that the notice had been delivered.The bench comprising Justice Jasjit Singh Bedi was dealing with a revision petition …

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 …

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 …

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 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 …

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, 1 month 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 …

2021 Supreme Court Digest On Negotiable Instruments Act
3 years, 2 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. …

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 …

Sec 138 NI Act : Non-Executive Directors Of Company Not Liable Without Specific Allegations: Delhi HC [Read Judgment]
5 years ago

Sec 138 NI Act : Non-Executive Directors Of Company Not Liable Without Specific Allegations: Delhi HC [Read Judgment]

Live Law  

In a case regarding the Dishonor of Cheque against a private limited company, the Delhi High Court held that the Non-executive Directors of the company cannot be held liable for the dishonour of cheque without specific allegations against them. The single bench of Justice Manoj Kumar Ohri said, "To fasten the criminal liability under The Negotiable Instruments Act, 1881, the …

Proceedings U/S 138 Of NI Act Not Maintainable Against Independent Non-Executive Directors Of A Company, Reiterates Delhi HC [Read Judgment]
5 years ago

Proceedings U/S 138 Of NI Act Not Maintainable Against Independent Non-Executive Directors Of A Company, Reiterates Delhi HC [Read Judgment]

Live Law  

The Delhi High Court on Tuesday reiterated that criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881, for dishonor of cheque are not maintainable against non-executive independent directors of a company. The order passed by Justice Manoj Kumar Ohri relies on a Supreme Court judgment in Pooja Ravinder Devidasani v. State of Maharashtra & Anr., 2014 SCALE to …

Unregistered Partnership Firms Can Maintain Complaint For Dishonor Of Cheque U/S 138 NI Act : Bombay HC [Read Judgment]
5 years, 1 month ago

Unregistered Partnership Firms Can Maintain Complaint For Dishonor Of Cheque U/S 138 NI Act : Bombay HC [Read Judgment]

Live Law  

The Nagpur Bench of the Bombay High Court on Friday held that an unregistered partnership firm can maintain a complaint under Section 138 of the Negotiable Instruments Act. The division bench comprising Justice PN Deshmukh and Justice Pushpa V Ganediwala was answering a reference from an order of single judge, questioning the previous view of the high court taken in …

Can Independent, Non-Executive Directors Of A Company Be Arrayed As Accused In Proceedings Against Dishonor Of Cheque: Delhi HC Answers [Read Judgment]
5 years, 2 months ago

Can Independent, Non-Executive Directors Of A Company Be Arrayed As Accused In Proceedings Against Dishonor Of Cheque: Delhi HC Answers [Read Judgment]

Live Law  

In a recent judgment, the Delhi High Court has recapitulated the law with respect to liability of Independent, Non-executive directors of company in complaints filed under Section 138 of NI Act 1881, for dishonor of cheque. The order passed by Justice Anu Malhotra has reiterated as under: That Independent Non-Executive Directors are not involved in day-to-day affairs of the company …

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 …

[138 NI Act] Accused Not Competent To Tender Evidence On Affidavit: Reiterates Punjab & Haryana HC [Read Judgment]
5 years, 4 months ago

[138 NI Act] Accused Not Competent To Tender Evidence On Affidavit: Reiterates Punjab & Haryana HC [Read Judgment]

Live Law  

The Punjab and Haryana High Court has held that an accused facing trial under the provisions of Negotiable Instruments Act cannot be allowed to tender evidence on affidavit. Justice Surinder Gupta said, "the petitioner being an accused, who is facing trial in complaint under the provisions of Negotiable Instruments Act, is not competent to tender his evidence through affidavit and …

[Section 143 NI Act] Dispose Dishonor of Cheque Cases Within Six Months: Uttarakhand HC To Trial Courts [Read Order]
5 years, 5 months ago

[Section 143 NI Act] Dispose Dishonor of Cheque Cases Within Six Months: Uttarakhand HC To Trial Courts [Read Order]

Live Law  

Reinforcing the significance of speedy disposal of matters, the Uttarakhand High Court on Wednesday directed a trial court to dispose of the impugned dishonor of cheque proceedings within six months. Asserting that as per Section 143 of the NI Act, the matter should ideally have been disposed of within six months of filing, the Applicant prayed that directions in that …

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