Negotiable Instruments Act

Old provisions as per Negotiable Instrument Act, 1881 with amended provisions by Negotiable Instrument Amendment Act, 2015

Corporate Law - a cheque in the electronic form means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be...

Read More

Compounding of offence under Negotiable Instruments Act, 1881

Corporate Law - G S Rao Introduction: Sections 138 to 142 of Negotiable Instruments Act,1881(NI Act) which deal with offence and prosecution for dishonour cheques were brought into force with effect from April 1, 1989 by Section 4 of the Banking Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988....

Read More

Confusion over Territorial Jurisdiction in Cheque dishnour cases

Corporate Law - The issue of dishnour of ‘At Par” cheques needs attention in view of the fact the cheque really does not travel to the drawee bank’s place unlike in olden days. Now clearances are done through electronic transfers. Keeping this in view, strict interpretation followed in Dashrath Rathod case may be relaxed in public interest. Apex co...

Read More

All about Dishonor of Cheque Under Negotiable Instrument Act, 1881

Corporate Law - The Payment and settlement System Act, 2007 was enacted on 20th December, 2007. The whole purpose of this act is to control the transactions which are made electronically. The intention of the government was to introduce of this act to increase the transactions through online instead of cheques....

Read More

Remedies for Cheque Bounce

Corporate Law -  According to statistics of Supreme Court; there are over 40 lakh pending cases of cheque bounce in the country. Lack of adequate knowledge has brought most of people in the situation of losing money. Here are some of the remedies a person can opt for while dealing with issues pertaining to return of cheque:...

Read More

Carifying jurisdiction related issues for filing cases for offence committed U/s. 138 of NI Act

Corporate Law - Proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015. The proposed amendments to the Negotiable Instruments Act, 1881 (The NI Act) are fo...

Read More

Approval to introduce Negotiable Instruments (Amendment) Bill, 2015

Corporate Law - The main amendment included in this is the stipulation that the offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated. ...

Read More

Delhi court sentences businessman to six months in jail in cheque bouncing case

Corporate Law - Expressing concern over rising cheque bouncing cases, a Delhi court has sentenced a businessman to six months in jail and imposed a fine of Rs 3 lakh on him, saying no leniency is called for in such cases. Metropolitan Magistrate Vishal Pahuja jailed Delhi-based cloth merchant Ravinder Kumar, rejecting his plea for release on probation af...

Read More

Companies cannot pay damages in installments- state consumer commission

Corporate Law - Mumbai- Till fairly recently, parties held guilty in consumer forums delayed shelling out compensation by paying only a part or by seeking adjournments. Not anymore. The state consumer commission has, among other measures, precluded payment of compen...

Read More

Special Courts For Cheque Bounced Cases- Veerappa Moily

Corporate Law - The Law Commission in its report had recommended that pendency of large number of cases relating to cheque bouncing tarnish the image of business. Cases relating to dishonoured cheques affect business within and outside the country. It said cheque bouncing cases need to be speedily disposed of through this measure, lest litigants may lose...

Read More

Cheque dishonour – Section 138 complaint not maintainable if Bank A/c was locked by statutory authority

Ceasefire Industries Ltd. Vs State & Ors. (Delhi High Court) - The provision contained in section 138 of the N.I. Act makes it clear that it is not every return of a cheque unpaid which leads to prosecution of an offence under the said provision of law. ...

Read More

Compensation recoverable in Cheque Bounce case even If ‘Default Sentence’ Has Been Suffered: SC

Kumaran Vs State of Kerala & Anr. (Supreme Court of India) - So long as compensation has been directed to be paid, albeit under Section 357(3), Section 431, Section 70 IPC and Section 421(1) proviso would make it clear that by a legal fiction, even though a default sentence has been suffered, yet, compensation would be recoverable in the manner provided under...

Read More

Husband Not Liable For Cheque Issued By Wife U/s 138 of NI Act, 1881

Harshad Manubhai Malavaiya Vs. State Of Gujarat (Gujarat High Court at Ahmedabad) - As the applicant is not a signatory to the cheque, no liability can be fastened upon him for the dishonour of the cheque under Section 138 of the Negotiable Instruments Act....

Read More

NI Act: Order Imprisoning for Default to Pay Compensation Appealable

P.S. Mitra Partha Sarathi Mitra Vs Manor Travels Private Limited and Another (Calcutta High Court) - The short question which falls for decision in this case is whether a judgment and order of conviction and sentence of imprisonment till the rising of the Court and an order of compensation imposed under Section 357(3) of the Code of Criminal Procedure with a direction to undergo imprisonment in def...

Read More

Sec.138 of N.I.Act – Prosecution to be launched in Jurisdiction of court where cheque was dishonored- SC

Dashrath Rupsingh Rathod Vs State of Maharashtra & Anr. (Supreme Court of India) - Honourable Supreme Court has held in the case of Dashrath Rupsingh Rathod Vs. State of Maharashtra & Anr. that all the pending cases of cheque bouncing under Negotiable Instrument Act to be transferred to the place from the cheque is issued....

Read More

The Negotiable Instruments (Amendment) Act, 2015

NO. 26 OF 2015 - (29/12/2015) - MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th December, 2015 The following Act of Parliament received the assent of the President on the 26th December, 2015, and is hereby published for general information:— THE NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2015 NO. 26 OF 2015...

Read More

President assents Negotiable Instruments (Amendment) Ordinance, 2015

6 OF 2015 - (15/06/2015) - NOW THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:-...

Read More

Negotiable Instruments (Amendment) Act, 2015 to amend NI Act, 1881

151 OF 2015 - (06/05/2015) - The Supreme Court, in its judgment dated 1st August, 2014, in the case of Dashrath Rupsingh Rathod versus State of Maharashtra and another (Criminal Appeal No. 2287 of 2009) , held that the territorial jurisdiction for dishonour of cheques is restricted to the court within whose local jurisdiction t...

Read More

Collection of third party account payee cheques – Prohibition on crediting proceeds to third party accounts – RBI circular No. RPCD.CO RRB.BC.No. 25 /03.05.33/2010-11

RBI/2010-11/ 238 RPCD.CO RRB.BC.No. 25 /03.05.33/2010-11 - (19/10/2010) - Please refer to our circular RPCD.CO.RRB.BC.No.19/03.05.33/2009-10 dated September 11, 2010 on the captioned subject, in which it has been stated that the practice of collection of cheques crossed ‘account payee’ through third party accounts (of co-operative credit societies) is not permissible....

Read More

Recent Posts in "Negotiable Instruments Act"

Cheque dishonour – Section 138 complaint not maintainable if Bank A/c was locked by statutory authority

Ceasefire Industries Ltd. Vs State & Ors. (Delhi High Court)

The provision contained in section 138 of the N.I. Act makes it clear that it is not every return of a cheque unpaid which leads to prosecution of an offence under the said provision of law. ...

Read More

Compensation recoverable in Cheque Bounce case even If ‘Default Sentence’ Has Been Suffered: SC

Kumaran Vs State of Kerala & Anr. (Supreme Court of India)

So long as compensation has been directed to be paid, albeit under Section 357(3), Section 431, Section 70 IPC and Section 421(1) proviso would make it clear that by a legal fiction, even though a default sentence has been suffered, yet, compensation would be recoverable in the manner provided under Section 421(1)....

Read More

Husband Not Liable For Cheque Issued By Wife U/s 138 of NI Act, 1881

Harshad Manubhai Malavaiya Vs. State Of Gujarat (Gujarat High Court at Ahmedabad)

As the applicant is not a signatory to the cheque, no liability can be fastened upon him for the dishonour of the cheque under Section 138 of the Negotiable Instruments Act....

Read More

NI Act: Order Imprisoning for Default to Pay Compensation Appealable

P.S. Mitra Partha Sarathi Mitra Vs Manor Travels Private Limited and Another (Calcutta High Court)

The short question which falls for decision in this case is whether a judgment and order of conviction and sentence of imprisonment till the rising of the Court and an order of compensation imposed under Section 357(3) of the Code of Criminal Procedure with a direction to undergo imprisonment in default of payment of such compensation is ...

Read More

The Negotiable Instruments (Amendment) Act, 2015

NO. 26 OF 2015 (29/12/2015)

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th December, 2015 The following Act of Parliament received the assent of the President on the 26th December, 2015, and is hereby published for general information:— THE NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2015 NO. 26 OF 2015 [26th December, 2015.] An Act further t...

Read More

Old provisions as per Negotiable Instrument Act, 1881 with amended provisions by Negotiable Instrument Amendment Act, 2015

a cheque in the electronic form means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be...

Read More
Posted Under: Corporate Law |

President assents Negotiable Instruments (Amendment) Ordinance, 2015

6 OF 2015 (15/06/2015)

NOW THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:-...

Read More

Carifying jurisdiction related issues for filing cases for offence committed U/s. 138 of NI Act

Proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015. The proposed amendments to the Negotiable Instruments Act, 1881 (The NI Act) are fo...

Read More
Posted Under: Corporate Law |

Negotiable Instruments (Amendment) Act, 2015 to amend NI Act, 1881

151 OF 2015 (06/05/2015)

The Supreme Court, in its judgment dated 1st August, 2014, in the case of Dashrath Rupsingh Rathod versus State of Maharashtra and another (Criminal Appeal No. 2287 of 2009) , held that the territorial jurisdiction for dishonour of cheques is restricted to the court within whose local jurisdiction the offence was committed, which in the p...

Read More

Approval to introduce Negotiable Instruments (Amendment) Bill, 2015

The main amendment included in this is the stipulation that the offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated. ...

Read More
Posted Under: Corporate Law |
Page 1 of 512345

Browse All Categories

CA, CS, CMA (3,480)
Company Law (3,398)
Custom Duty (6,603)
DGFT (3,446)
Excise Duty (4,043)
Fema / RBI (3,249)
Finance (3,453)
Income Tax (25,013)
SEBI (2,733)
Service Tax (3,280)

Search Posts by Date

September 2017
M T W T F S S
« Aug    
 123
45678910
11121314151617
18192021222324
252627282930