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, 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 the dishonoured cheque which relates to specific bank account of the accused," held the bench of Justices Hrishikesh Roy and Sanjay Karol. As mentioned above, the Court held the accused cannot rely upon other bank accounts for the dishonoured cheque which relates to specific bank account.

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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, 3 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, 3 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, 4 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 | Advisable To Impose Fine Equivalent To Amount Of Cheque With At Least 6% Interest For Uniformity: Punjab & Haryana High Court
2 weeks, 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
3 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 …

Madras High Court issues directions for speedy disposal of cheque bounce cases
1 month, 2 weeks 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 …

Criminal Liability For Cheque Dishonour Primarily On Drawer Company, Officers Are Held Liable Only If Section 141 Is Satisfied: Gujarat HC
1 month, 2 weeks 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, 2 weeks 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, 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
1 month, 4 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, 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 …

Supreme Court Yearly Digest 2024: Negotiable Instruments Act, 1881
3 months ago

Supreme Court Yearly Digest 2024: Negotiable Instruments Act, 1881

Live Law  

Director of the company not responsible for its day-to-day affairs cannot be held liable for dishonour of cheque. Prem Raj v. Poonamma Menon, 2024 LiveLaw 272 : 6 SCC 143 Section 138 – Dishonouring of cheque – Held, existence of any “enforceable debt or other liability” not found. Raj Reddy Kallem v. State of Haryana, 2024 LiveLaw 336 Section 147 …

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

S. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court
3 months, 3 weeks ago

S. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court

Live Law  

The Supreme Court recently reiterated that the official signatory of the company does not assume the status of a 'drawer of a cheque' to attract the liability for payment of compensation under Section 148 of the Negotiable Instruments Act, 1881. “To wit, as in the case of the position qua Section 143A, NI Act, merely because an officer of a …

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, 2 weeks 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
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 …

HC Can't Quash Cheque Dishonour Complaint Invoking S.482 CrPC When Complainant Hasn't Consented For Compounding: Supreme Court
7 months ago

HC Can't Quash Cheque Dishonour Complaint Invoking S.482 CrPC When Complainant Hasn't Consented For Compounding: Supreme Court

Live Law  

The Supreme Court reiterated that dishonour of cheque cases can be compounded under Section 147 of the Negotiable Instruments Act only with the consent of a complainant. In the present case, the High Court had compounded the offence, even though the appellants/ complainant had not consented, by invoking its inherent power under Section 482 Cr.P.C. Act, in the absence of …

Negotiable Instruments Act | Court Can Compound Offences U/S 147 Even After Conviction: Himachal Pradesh High Court
7 months 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. …

[Cheque Dishonour] Accused Often Get Away Due To Lack Of Evidence, Courts Must Acknowledge Friendly Cash Loans Between Parties: Delhi HC
7 months ago

[Cheque Dishonour] Accused Often Get Away Due To Lack Of Evidence, Courts Must Acknowledge Friendly Cash Loans Between Parties: Delhi HC

Live Law  

While hearing a matter on cheque bounce under the Negotiable Instruments Act, the Delhi High Court recently said that it would be prudent for courts to acknowledge that friendly cash loans are provided between parties without an existing document trail, with accused often getting acquitted because the complainant is unable to prove the existence of a debt. A single judge …

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 …

Dishonour of cheque of erstwhile bank not an offence: HC
9 months, 1 week ago

Dishonour of cheque of erstwhile bank not an offence: HC

Hindustan Times  

The Allahabad high court has ruled that cheques from erstwhile banks became ‘invalid’ after September 30, 2021. For representation only Justice Arun Kumar Singh Deshwal observed while allowing a petition filed by one Archana Singh Gautam seeking quashing of the entire criminal proceeding, including the impugned summoning order in a Complaint Case under Section 138 NI Act. “From the perusal …

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, 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, …

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

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

Live Law  

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

[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 …

[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 …

Cheque Dishonour | Wife Not Signatory, Cannot Be Held Liable For Cheque Signed & Given By Husband From Joint Account: Bombay High Court
1 year, 3 months ago

Cheque Dishonour | Wife Not Signatory, Cannot Be Held Liable For Cheque Signed & Given By Husband From Joint Account: Bombay High Court

Live Law  

The Bombay High Court recently quashed and set aside process and summons issued to a woman by the Magistrate's court in a cheque bounce case, noting that only her husband was a signatory to the cheque. The woman approached the High Court after the Magistrate issued process against her and her husband on November 27, 2019 u/s 138 of the …

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 …

s138 NI Act | Complainant Had No Right Over Property, Misused Cheques Issued To Grandfather: Karnataka High Court Upholds Accused's Acquittal
1 year, 3 months ago

s138 NI Act | Complainant Had No Right Over Property, Misused Cheques Issued To Grandfather: Karnataka High Court Upholds Accused's Acquittal

Live Law  

It held: It is admitted that neither her grandfather nor her maternal uncle has promised her to give. It appears that the cheques said to have been issued as security in respect of the sale transaction of property with Sri.H.V.Venkatappa Reddy have been misused by the complainant. The Karnataka High Court has dismissed an appeal upon noting that the appellant/complainant …

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains
1 year, 5 months ago

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains

Live Law  

Reiterating the principles relating to the presumption under Section 139 of the Negotiable Instruments Act 1881, the Supreme Court reversed the acquittal of an accused in a case for cheque dishonour.A bench comprising Justices Aravind Kumar and SVN Bhatti observed that there was a "fundamental flaw" in the approach taken by both the Trial Court and the High Court.Summarising the …

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 …

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 …

Cheque Dishonour- Additional Accused Cannot Be Impleaded After Expiry Of Limitation Period Under Sec 142 NI Act : Supreme Court
2 years, 4 months ago

Cheque Dishonour- Additional Accused Cannot Be Impleaded After Expiry Of Limitation Period Under Sec 142 NI Act : Supreme Court

Live Law  

The Supreme Court held that impleadment of additional accused subsequent to the filing of a cheque bounce complaint is not permissible once the limitation prescribed for taking cognizance of the offence under Section 142 of the Negotiable Instruments Act has expired.In this case, the High Court quashed a summoning order passed by a Magistrate in a cheque bounce complaint on …

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 …

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time
2 years, 5 months ago

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time

Live Law  

A party faced the ire of the Supreme Court for taking a cheque dishonour dispute to the level of apex level before agreeing to settle the matter with the complainant. The appellant had approached the Supreme Court challenging the concurrent orders of conviction passed by three courts against him for the offence of cheque dishonour under Section 138 of the …

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 Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881
2 years, 7 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 …

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