Negotiable Instruments Act

Moratorium: Not Applicable to action U/s. 138 of Negotiable Instruments Act, 1881

Corporate Law - This article is a critical analysis of the recent judgment of NCLAT i.e., in the matter of Shah Brothers Ispat Pvt. Ltd. Vs. P. Mohanraj & Ors.-Company Appeal (AT) (Insolvency) No. 61 of 2018 wherein it has been held that moratorium will not be applicable to action under section 138 of the Negotiable Instruments Act, 1881....

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Provisions of S. 68 of Income-tax Act, must be read with Negotiable Instruments Act, 1881, particularly when liability is acknowledged on realization of cheque

Corporate Law - When on receipt of money by way of cheque a liability is acknowledged by receiver as loan or deposit or share capital, it need to be viewed considering ground realities faced by receiver of money against which he incur liability....

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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...

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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....

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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...

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Negotiable Instrument (Amendment) Bill, 2018 passed by Lok Sabha

Corporate Law - Lok Sabha passes Negotiable Instrument (Amendment) Bill, 2018 a bill further to amend the Negotiable Instruments Act, 1881 by which it has proposed to  insert section 143A -Power to direct interim compensation and Section 148-Power of Appellate Court to order payment pending appeal against conviction. Bill No. 281-C of 2017 THE NEGOTIABL...

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Negotiable Instruments (Amendment) Bill, 2017 as introduced in Lok Sabha

Corporate Law - It is, therefore, proposed to introduce the Negotiable Instruments (Amendment) Bill, 2017 to provide, inter alia, for the following, namely:—(i) to insert a new section 143A in the said Act to provide that the Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant, in ...

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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...

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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. ...

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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...

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SC on Rebuttal by Accused against Presumption in Cheque Bounce Cases

Kishan Rao Vs Shankargouda (Supreme Court Of India) - Kishan Rao Vs Shankargouda (Supreme Court Of India) In the present case, the trial court as well as the Appellate Court having found that cheque contained the signatures of the accused and it was given to the appellant to present in the Bank of the presumption under Section 139 was rightly raised wh...

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Advocate Fees based on a share in subject matter is professional misconduct & cannot be the basis of a Complaint U/s. 138 of NI Act: SC

B. Sunitha Vs. The State Of Telangana & Anr. (Supreme Court of India) - Mere issuance of cheque by the client may not debar him from contesting the liability. If liability is disputed, the advocate has to independently prove the contract. Claim based on percentage of subject matter in litigation cannot be the basis of a complaint under Section 138 of the Act....

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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. ...

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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...

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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....

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Negotiable Instruments (Amendment) Act, 2018

NO. 20 OF 2018 - (02/08/2018) - This Act may be called the Negotiable Instruments (Amendment) Act, 2018. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint....

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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...

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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:-...

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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...

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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....

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Recent Posts in "Negotiable Instruments Act"

Moratorium: Not Applicable to action U/s. 138 of Negotiable Instruments Act, 1881

This article is a critical analysis of the recent judgment of NCLAT i.e., in the matter of Shah Brothers Ispat Pvt. Ltd. Vs. P. Mohanraj & Ors.-Company Appeal (AT) (Insolvency) No. 61 of 2018 wherein it has been held that moratorium will not be applicable to action under section 138 of the Negotiable Instruments Act, 1881....

Read More
Posted Under: Corporate Law |

Negotiable Instruments (Amendment) Act, 2018

NO. 20 OF 2018 (02/08/2018)

This Act may be called the Negotiable Instruments (Amendment) Act, 2018. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint....

Read More

Negotiable Instrument (Amendment) Bill, 2018 passed by Lok Sabha

Lok Sabha passes Negotiable Instrument (Amendment) Bill, 2018 a bill further to amend the Negotiable Instruments Act, 1881 by which it has proposed to  insert section 143A -Power to direct interim compensation and Section 148-Power of Appellate Court to order payment pending appeal against conviction. Bill No. 281-C of 2017 THE NEGOTIABL...

Read More
Posted Under: Corporate Law |

SC on Rebuttal by Accused against Presumption in Cheque Bounce Cases

Kishan Rao Vs Shankargouda (Supreme Court Of India)

Kishan Rao Vs Shankargouda (Supreme Court Of India) In the present case, the trial court as well as the Appellate Court having found that cheque contained the signatures of the accused and it was given to the appellant to present in the Bank of the presumption under Section 139 was rightly raised which was not […]...

Read More

Provisions of S. 68 of Income-tax Act, must be read with Negotiable Instruments Act, 1881, particularly when liability is acknowledged on realization of cheque

When on receipt of money by way of cheque a liability is acknowledged by receiver as loan or deposit or share capital, it need to be viewed considering ground realities faced by receiver of money against which he incur liability....

Read More
Posted Under: Corporate Law |

Negotiable Instruments (Amendment) Bill, 2017 as introduced in Lok Sabha

It is, therefore, proposed to introduce the Negotiable Instruments (Amendment) Bill, 2017 to provide, inter alia, for the following, namely:—(i) to insert a new section 143A in the said Act to provide that the Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant, in ...

Read More
Posted Under: Corporate Law |

Advocate Fees based on a share in subject matter is professional misconduct & cannot be the basis of a Complaint U/s. 138 of NI Act: SC

B. Sunitha Vs. The State Of Telangana & Anr. (Supreme Court of India)

Mere issuance of cheque by the client may not debar him from contesting the liability. If liability is disputed, the advocate has to independently prove the contract. Claim based on percentage of subject matter in litigation cannot be the basis of a complaint under Section 138 of the Act....

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 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

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