Section 138 NI Act: Cheque Not Valid If Amount Written Is Uncertain, Holds Delhi Court [Read Order]
4 years, 7 months ago

Section 138 NI Act: Cheque Not Valid If Amount Written Is Uncertain, Holds Delhi Court [Read Order]

Live Law  

A Delhi Court has recently held that an instrument cannot be termed as a cheque, if it does not specify a "certain amount" of money to be paid to a certain person. "There could have been no dispute about this instrument being a cheque within the definition of section 6 of the NI Act but for its failure to meet condition of certainty of the amount to be paid," the Court remarked. However, the Court held that this argument does not hold much water as "for a notice u/s 138 NI Act to fulfill the requirements of that section, the primary condition that has to be satisfied is that the dishonoured instrument was a valid negotiable instrument, which could be considered to be a cheque within the definition under section 6 of NI Act." The Court held, "In the present case, as instrument presented was not a cheque with the definition of section 6 of NI Act, a notice for subsequent dishonour of such instrument will not impose any liability upon the drawee either for non compliance or for non issuance of a fresh cheque." SC's verdict in Laxmi Dyechem case not applicable As mentioned above, the Respondent had relied on the judgment in Laxmi Dyechem where the Supreme Court had expanded the scope of the expression "amount of money…is insufficient" as appearing in Section 138 of the Act to include dishonour of cheques due to mismatch of signature.

Words Court Case Act Valid Certain 138 Section 138 Cheque Revisionist Section 138 Of Ni Act This Instrument Laxmi Dyechem 138 Ni Act Instrument Present  valid  ni  instrument  present  138  written  holds  court  case  uncertain  order  words  act  certain  cheque  delhi  read

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
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 …

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

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

Live Law  

The Jammu and Kashmir High Court held that the declaration of a moratorium would not bar the complainant from filing a complaint under the NI Act. The court said that the debtor cannot take refuge under the Code to frustrate proceedings under the NI Act if he is found liable to pay compensation in the proceedings. The trial court directed …

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 …

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, 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 …

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. …

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, …

[NI Act] MP High Court Refuses Permission To Rectify Incorrect Mention Of Cheque Dates In Complaint, Says It's A Substantial Defect
11 months, 3 weeks ago

[NI Act] MP High Court Refuses Permission To Rectify Incorrect Mention Of Cheque Dates In Complaint, Says It's A Substantial Defect

Live Law  

Madhya Pradesh High Court has iterated that the defect of mentioning incorrect dates of cheque in the complaint cannot be cured since there is no provision in the CrPC to amend the criminal complaint. Justice Verma, therefore, opined that the trial court had committed an error by allowing the application for making amendments to the original complaint filed under Section …

S.138 NI Act | Cause Of Action U/S 142(1)(B) Only Arises After Expiry Of 15 Days For Payment Of Amount: Allahabad High Court
1 year ago

S.138 NI Act | Cause Of Action U/S 142(1)(B) Only Arises After Expiry Of 15 Days For Payment Of Amount: Allahabad High Court

Live Law  

The Allahabad High Court has held that the cause of action under Section 142 of the Negotiable Instruments Act, 1881 arises after expiry of 15 days granted to the drawer to pay the amount to the payee/cheque holder under clause of Section 138 of the Act. Section 142 of the NI Act provides that a complaint must be made within …

Blank Cheque Voluntarily Signed & Handed Over By Drawer Towards Payment Attracts Presumption Under S.139 NI Act : Supreme Court
1 year, 1 month ago

Blank Cheque Voluntarily Signed & Handed Over By Drawer Towards Payment Attracts Presumption Under S.139 NI Act : Supreme Court

Live Law  

The Supreme Court has reiterated that a blank cheque leaf, which has been voluntarily signed by the drawer and handed over to the payee towards some payment, will carry the presumption that it was issued in discharge of a legally enforceable debt as per Section 139 of the Negotiable Instruments Act. ".even if a blank cheque leaf is voluntarily signed …

S.138 NI Act | 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 …

Notice Under S.138 NI Act Invalid If Omnibus Demand Is Made Without Specifying Cheque Amount : Supreme Court
1 year, 2 months ago

Notice Under S.138 NI Act Invalid If Omnibus Demand Is Made Without Specifying Cheque Amount : Supreme Court

Live Law  

Finding the demand raised in a notice issued under Section 138 of the Negotiable Instruments Act, 1881, to be omnibus in nature, the Supreme Court quashed a criminal case for the dishonour of a cheque. The Supreme Court bench comprising Justices CT Ravikumar and PV Sanjay Kumar while referring to the case Suman Sethi, in para 6 noted that: “A …

S.138 NI Act | 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, …

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 …

S.142 NI Act | Third Party Cannot Prosecute Drawer For Dishonour Of Cheque: Kerala High Court
1 year, 6 months ago

S.142 NI Act | Third Party Cannot Prosecute Drawer For Dishonour Of Cheque: Kerala High Court

Live Law  

The Kerala High Court recently laid down that a third party cannot prosecute the drawer of cheque for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. Perusing Section 142 of the Act which provides that no court shall take cognizance of. Perusing Section 142 of the Act which provides that no court shall take cognizance of …

Section 138 NI Act| 'Notice Not Invalid If Other Amount Is Separately Indicated Therein Along With Cheque Amount': Allahabad High Court
1 year, 10 months ago

Section 138 NI Act| 'Notice Not Invalid If Other Amount Is Separately Indicated Therein Along With Cheque Amount': Allahabad High Court

Live Law  

The Allahabad High Court has held that if in a demand notice, other amounts are mentioned along with the cheque amount in a separate portion in detail, the said notice can not be faulted in a legal term of Section 138 of the Act, 1881.For context, as per Section 138 of the 1881 Act, the payee or the holder in …

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 | Fine Imposed Must Not Exceed Double The Cheque Amount: Kerala High Court
2 years, 5 months ago

S.138 NI Act | Fine Imposed Must Not Exceed Double The Cheque Amount: Kerala High Court

Live Law  

The Kerala High Court on Wednesday said that the maximum amount of fine, including the interest, imposed in a case under Section 138 of the Negotiable Instruments Act, 1881 must not exceed twice the amount of the cheque.Justice A. Badharudeen said the punishment provided for commission of offence under Section 138 of the N.I Act is imprisonment for a term …

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 …

Cheques Dishonored Due To Stop Payment, Account Closed & Signature Mismatch, All Fall Within Ambit Of S.138 NI Act: J&K&L High Court
2 years, 7 months ago

Cheques Dishonored Due To Stop Payment, Account Closed & Signature Mismatch, All Fall Within Ambit Of S.138 NI Act: J&K&L High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court recently reiterated that the provisions contained in Section 138 of the NI Act must be interpreted in a liberal manner so as to achieve the object for which the said provision has been enacted. Not only the cases of dishonour of cheques on account of insufficiency of funds or on account of …

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 …

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 …

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court
3 years, 1 month ago

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court

Live Law  

If a cheque is returned by a bank with an endorsement "account frozen", then it presupposes the existence of the account, observed the Supreme Court in a recent case.The Court expressed surprise at the stand of the bank that the no such account was maintained and operated by it, despite returning the cheque with the remark "account frozen".In this background, …

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, 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. …

Sec 138 NI Act- Absence Of Salutation In Cheque Irrelevant; Not Ground For Acquittal: Kerala High Court
3 years, 5 months ago

Sec 138 NI Act- Absence Of Salutation In Cheque Irrelevant; Not Ground For Acquittal: Kerala High Court

Live Law  

The Kerala High Court recently ruled that the absence of salutation while drawing the cheque by the accused cannot be a ground for the accused to be acquitted in proceedings under Section 138 of the Negotiable Instruments Act.Justice Gopinath P while allowing an appeal, observed: "The alphabets 'M/s' which is short form for 'Messrs' is normally a salutation intended to …

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 …

Enlargement of Scope & Changed Judicial Contours of Section 138 NI Act Before SC's Ruling in M/s Laxmi Dyechem v. State of Gujarat
3 years, 9 months ago

Enlargement of Scope & Changed Judicial Contours of Section 138 NI Act Before SC's Ruling in M/s Laxmi Dyechem v. State of Gujarat

Live Law  

Prolegomenon to the Financial Transactions in Cheques: The law apropos negotiable instruments is the law of the commercial world legislated to facilitate the activities & transactions in trade and commerce and further, to bolster the efficacy of banking operations as well as to foster remittances through cheques to discharge debt obligations & liabilities eventually, not only inspiring confidence in creditors …

Section 138 NI Act : Supreme Court Forms Committee To Suggest Steps For Expeditious Trial Of Cheque Dishonour Cases
4 years ago

Section 138 NI Act : Supreme Court Forms Committee To Suggest Steps For Expeditious Trial Of Cheque Dishonour Cases

Live Law  

A Constitution Bench of the Supreme Court has on Wednesday directed the formation of a Committee under Chairmanship of former Bombay High Court judge Justice RC Chavan to consider steps to be taken for expeditious disposal of cheque bounce cases under Section 138 of the Negotiable Instruments Act. A Constitution Bench led by CJI Bobde found it appropriate to form …

Dishonour Of Cheques- Blank Cheque Would Attract Presumption U/s 139 NI Act If Signatures Are Admitted: Supreme Court
4 years, 1 month ago

Dishonour Of Cheques- Blank Cheque Would Attract Presumption U/s 139 NI Act If Signatures Are Admitted: Supreme Court

Live Law  

The Supreme Court observed that even a blank cheque leaf would attract presumption under Section 139 of the Negotiable Instruments Act when signatures are admitted by the accused.The bench comprising Justices NV Ramana, Surya Kant and Aniruddha Bose observed that 'reverse onus' clauses under Section 118 and Section 139 of the Negotiable Instruments Act become operative once the signature. The …

S.138 NI Act: SC Directs RBI To Consider Developing A New Proforma Cheque To Include Purpose Of Payments [Read Order]
5 years ago

S.138 NI Act: SC Directs RBI To Consider Developing A New Proforma Cheque To Include Purpose Of Payments [Read Order]

Live Law  

The Supreme Court has recently asked The Reserve Bank of India to consider developing a new proforma of cheques so as to include the purpose of payment, along with other informations to facilitate adjudication of real issues in cheque bounce cases. The Reserve Bank of India may consider developing a new proforma of cheques so as to include the purpose …

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 …

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 …

Complaint U/s 138 NI Act Maintainable Against Dishonour Of Cheque Issued Pursuant To Lok Adalat Award: SC [Read Order]
5 years, 4 months ago

Complaint U/s 138 NI Act Maintainable Against Dishonour Of Cheque Issued Pursuant To Lok Adalat Award: SC [Read Order]

Live Law  

The Supreme Court has observed that a complaint under Section 138 of the Negotiable Instruments Act for dishonor of a cheque issued pursuant to the Lok Adalat award is maintainable. In appeal filed by the complainant, the Apex Court bench comprising of Justice Indira Banerjee and Justice MR Shah noted that in Lalit Kumar Sharma case, the cheque had not …

138NI Act-Proceedings Cannot Be Quashed On The Ground That Notice Not Served Within Statutory Period:SC [Read Order]
5 years, 6 months ago

138NI Act-Proceedings Cannot Be Quashed On The Ground That Notice Not Served Within Statutory Period:SC [Read Order]

Live Law  

The Supreme Court has recently held that the proceedings under Section 138 of the Negotiable Instruments Act cannot be quashed on the ground that the demand notice not duly served within the statutory period.The Court has reiterated that the service of notice to the accused under Section 138 of the Negotiable Instruments Act is a triable issue and cannot be …

Dishonour Of Cheques: 14 Latest Supreme Court Judgments
5 years, 9 months ago

Dishonour Of Cheques: 14 Latest Supreme Court Judgments

Live Law  

Section 148 NI Act Retrospective In this case, the Supreme Court held that Section 148 of the Negotiable Instruments Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence under Section 138 of the N.I. Complainant Need Not Prove Source Of Fund, Once Section 139 Presumption Is Drawn The …

Section 138 NI Act: Notice Demanding 'Loan Amount' Not Invalid If It Is Same As 'Cheque Amount': SC [Read Order]
5 years, 11 months ago

Section 138 NI Act: Notice Demanding 'Loan Amount' Not Invalid If It Is Same As 'Cheque Amount': SC [Read Order]

Live Law  

The Supreme Court has observed that a demand notice issued under Section 138 of the Negotiable Instruments Act, claiming 'loan amount', does not become invalid, if it is same as the amount covered under the dishonoured cheque. Before the Apex Court, the accused, relying upon clause of the proviso to Section 138 of the NI Act, contended that the demand …

Discover Related