High Court Rejects Plea to Dismiss Cheque Bounce Complaint
2 months, 1 week ago

High Court Rejects Plea to Dismiss Cheque Bounce Complaint

Live Law  

The Karnataka High Court has ruled that a complaint for an offence punishable under Section 138 of the Negotiable Instruments Act would be maintainable, even if a civil suit for recovery of the money is instituted. The court relied on the Apex court judgment in the case of D.PURUSHOTAMA REDDY v. K.SATEESH, (2008) 8 SCC 505, which held that two proceedings are maintainable if they are related to the same cause of action.

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History of this topic

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal
2 days, 6 hours ago

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal

Live Law  

Rajasthan High Court set aside conviction and sentence in a cheque dishonour case in light of settlement reached between the parties while imposing a cost of 15% of the cheque value on the petitioner since the compromise was reached at after rejection of appeal filed by the convict and pending revision petition. The bench of Justice Manoj Kumar Garg was …

S. 138 NI Act | Complainant Can't Be Left Remediless Merely Because He Filed 'Premature' Complaint For Cheque Dishonour: Rajasthan HC
1 week, 4 days 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 …

Supreme Court Yearly Digest 2024: Negotiable Instruments Act, 1881
2 weeks, 2 days 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. 148 NI Act | Signatory Of Cheque Issued By Company Can't Be Directed To Pay Compensation For Suspension Of Sentence : Supreme Court
1 month, 1 week 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 …

Cognizance Of Cheque Dishonour U/S 138 NI Act Can Be Taken Only Upon A Written Complaint: Jharkhand High Court Reiterates
1 month, 3 weeks 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 …

Condition Of Pre-Deposit U/S 148 Negotiable Instruments Act Can't Be Used To Jeopardise Convict's Right To Appeal: Rajasthan High Court
2 months 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, …

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

High Court Rejects Plea to Dismiss Murder Case, Says Prosecution Must Follow Due Process
2 months, 1 week ago

High Court Rejects Plea to Dismiss Murder Case, Says Prosecution Must Follow Due Process

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, notwithstanding the civil suit filed for recovery of the money. The court also held that initiating prosecution under Section 304-A (causing death by negligence) of the Indian Penal Code, against the owners/manager of a factory is …

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation
2 months, 1 week 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
4 months, 2 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
5 months, 1 week 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
6 months 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
6 months, 2 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
7 months, 1 week 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
8 months, 1 week 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, …

[Cheque Dishonour] Complainant Failed To Prove Cheque Was Issued Against Legally Enforceable Debt: Kerala High Court Acquits Accused
9 months, 3 weeks 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
10 months ago

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

Live Law  

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

S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court
11 months 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 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 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 | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court
1 year ago

Cheque Dishonour | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court

Live Law  

The Karnataka High Court has held that in a cheque bounce case, the onus is on the accused to prove that the cheque was misused after it was issued to another person in lieu of a loan borrowed from them and thus did not amount to a legally enforceable debt. The primary contention of the accused was that the complainant …

S.138 NI Act | Availability Of Funds In Other Bank Accounts Not A Defence; Cheque Dishonour Relates To Specific Account: Supreme Court
1 year, 1 month 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, …

Quash Cheque Bounce Case For Time-Barred Debt
1 year, 4 months ago

Quash Cheque Bounce Case For Time-Barred Debt

Live Law  

The Supreme Court observed that the question whether a cheque was issued towards a time barred debt is to be decided on evidence. "It is crystal clear that this Court keeping in perspective the nature of the proceedings arising under the NI Act and also keeping in view that the cheque itself is a promise to pay even if the …

Hampi Ustav: Cheque bounce case against organisers
1 year, 6 months ago

Hampi Ustav: Cheque bounce case against organisers

The Hindu  

Cheques issued by the Department of Kannada and Culture to folk artists and writers who participated in Hampi Utsav, from January 27 to 29, 2023, have bounced. After getting no response from the department officials, one of the folk artists filed a cheque bounce case against the department in court. The Kannada and Culture Department organised various cultural programmes, poets’ …

Not Proper To Shift Burden On Complainant To Prove NI Act Case Beyond ‘Reasonable Doubt’ When Accused Didn’t Respond To Statutory Notice: Gujarat High Court
1 year, 7 months ago

Not Proper To Shift Burden On Complainant To Prove NI Act Case Beyond ‘Reasonable Doubt’ When Accused Didn’t Respond To Statutory Notice: Gujarat High Court

Live Law  

While allowing a leave to appeal against acquittal in a criminal case under Section 138 of the N.I. Act, the Gujarat High Court said the Magistrate's approach in shifting the burden upon the complainant to prove his case beyond reasonable doubt was not proper “when the accused has chosen not to question the financial capacity of complainant at very first …

Supreme Court Annual Digest 2022- Negotiable Instruments Act
1 year, 11 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 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, 1 month 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, 1 month 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, 2 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 …

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time
2 years, 2 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, 3 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 …

Supreme Court Half Yearly Digest 2022 (Jan - Jun) Negotiable Instruments Act, 1881
2 years, 4 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 …

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, 4 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 …

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC
2 years, 4 months ago

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC

Live Law  

The Himachal Pradesh High Court has observed that if the drawer of a cheque fails to raise a "probable defence" or to contest the existence of a legally enforceable debt or to deny the issuance of the cheque and signatures thereupon, the statutory presumption in favour of cheque holder under Section 139 of Negotiable Instruments Act comes into play. "Interestingly, …

S.143A NI Act | Court Not Obliged To Direct Payment Of Interim Compensation In Cheque Bounce Cases: Bombay High Court
2 years, 5 months ago

S.143A NI Act | Court Not Obliged To Direct Payment Of Interim Compensation In Cheque Bounce Cases: Bombay High Court

Live Law  

The Bombay High Court has said that courts don't have a duty to grant interim compensation to the complainant in a cheque bounce case. The question before the court was - whether Section 143-A of the NI Act, which empowers the Court to direct payment of interim compensation are mandatory or directory? Section 143-A doesn't cast any duty on court …

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, 7 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 …

High Courts Should Be Slow To Grant Relief Of Quashing Complaint U/Sec 138 NI Act At A Pre Trial Stage: Supreme Court
2 years, 8 months ago

High Courts Should Be Slow To Grant Relief Of Quashing Complaint U/Sec 138 NI Act At A Pre Trial Stage: Supreme Court

Live Law  

The Supreme Court observed that a High Courts should be slow to grant the relief of quashing a complaint under Section 138 of Negotiable Instruments Act at a pre-trial stage.In a situation where the accused moves Court for quashing even before trial has commenced, the Court's approach should be careful enough to not to prematurely extinguish the case by disregarding …

If Ground Of Delay In Filing S.138 NI Act Complaint Is Raised For First Time In Appeal, Case May Be Remanded Back For Consideration U/S 142(b): Karnataka HC
2 years, 8 months ago

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

Live Law  

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

Section 138 NI Act - Bank Can't Deny Existence Of Account After Returning Cheque With Remark 'Account Frozen' : Supreme Court
2 years, 10 months 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, …

Section 138 NI Act - Prima Facie Indication That Complaint Is Filed By Authorized Person Of Company Sufficient For Magistrate To Take Cognisance : Supreme Court
2 years, 10 months 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
2 years, 11 months ago

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

Live Law  

Pursuant to Supreme Court's directions issued last year regarding expeditious trials in cases filed under section 138 of the Negotiable Instruments Act related cheque bouncing cases, the Bombay High Court has issued a circular setting out the following guidelines: 1.Magistrates trying offences under the NI Act convert a complaint under section 138 of the NI Act from summary trial to …

2021 Supreme Court Digest On Negotiable Instruments Act
3 years 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 …

Gravity Of Complaint Under Negotiable Instruments Act Cannot Be Equated With An Offence Under IPC Or Other Criminal Offence: Supreme Court
3 years, 3 months ago

Gravity Of Complaint Under Negotiable Instruments Act Cannot Be Equated With An Offence Under IPC Or Other Criminal Offence: Supreme Court

Live Law  

The Supreme Court observed that the gravity of complaint under Negotiable Instruments Act cannot be equated with an offence under the provisions of the Indian Penal Code or other criminal offence.The court reiterated that that the presumption under Section 139 of the Negotiable Instruments Act would remain, until the contrary is proved. The Supreme Court observed that the gravity of …

Dismissal Of Complaint For Non Payment Of Process Fees Revisable : Kerala High Court
3 years, 4 months ago

Dismissal Of Complaint For Non Payment Of Process Fees Revisable : Kerala High Court

Live Law  

The Kerala High Court has observed that if a criminal complaint is dismissed for non payment of process fees or other fees dealt under Section 204 Code of Criminal Procedure, the same is not an appealable order, but revisable.The court said that if the dismissal of a complaint is for non appearance or death of the complainant, the same amounts …

Cognizance Of Section 138 NI Act Offence By Magistrate Will Not Automatically Result In Decree In Civil Suit For Cheque Dishonour : Delhi High Court
3 years, 5 months ago

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

Live Law  

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

Depositing part compensation can’t be pre-condition for admitting plea in cheque bounce cases, rules HC
4 years ago

Depositing part compensation can’t be pre-condition for admitting plea in cheque bounce cases, rules HC

Hindustan Times  

The Punjab and Haryana High Court has ruled that depositing a part of compensation cannot be made a pre-condition for entertaining a convict’s appeal for hearing in a cheque bounce case. The HC bench observed that even as the Negotiable Instruments Act could override provisions of the Code of Criminal Procedure, there is no such specific provision in it that …

Cheque-Bounce Not An Offence Against Society, Accused Can Escape Punishment By Compounding: P & H HC Reduces Imprisonment on Account Of Mitigating Factors [Read Order]
4 years, 4 months ago

Cheque-Bounce Not An Offence Against Society, Accused Can Escape Punishment By Compounding: P & H HC Reduces Imprisonment on Account Of Mitigating Factors [Read Order]

Live Law  

"Cheque bounce is not an offence against society and an accused can escape punishment by settling with the complainant", observed the Punjab and Haryana Court on Tuesday. The Single Bench expressed that in imposing a sentence under Section 138 of the Negotiable Instruments Act, while the Court must be alive to the concern of the Legislature in inserting Chapter XVII …

Expiry Of Cheque Due To Lockdown 'Unfortunate Issue', Says Delhi HC; Seeks RBI Response [Read Order]
4 years, 7 months ago

Expiry Of Cheque Due To Lockdown 'Unfortunate Issue', Says Delhi HC; Seeks RBI Response [Read Order]

Live Law  

The Delhi High Court termed the expiry of cheque on account of the sealing of the branch of bank where it was deposited amid lockdown 'unfortunate issue'.Observing thus, a bench of Justice Jayanth Nath sought the response of the Reserve Bank of India to the issue.The Court was considering a writ petition filed by one Abhinav Chawla, whose cheque for …

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