Negotiable Instruments Act

Decriminalisation of Cheque Bouncing

Corporate Law - The statement released by Ministry of Finance on 8th June, 2020 has proposed to decriminalize a number of economic offences and one of such offences is the offence under Sec 138 of Negotiable Instruments Act, 1881 for dishonor of cheque. The Ministry has invited comments of stakeholders latest by June 23, 2020 on the decriminalization [&h...

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‘Decriminalization of Section 138’ is Indian Economy heading for a DOOM?

Corporate Law - Rupali and Bhavi* A significant step has been taken by the Government of India with an objective of achieving ‘Sabka saath, Sabka Vikas and Sabka Vishwas’ and proposed decriminalization of several economic offences including the offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881. This section ensu...

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Dishonour of cheque

Corporate Law - In the day to day life, many of us might have acquainted with the issue of dishonor of cheque or cheque bounce, due to the insufficiency of funds or signature mismatch or overwriting or any other reasons. This article is a hand to know the provisions of the Negotiable Instrument Act 1881 dealing with the […]...

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Are you an Accused in False Cheque Bounce Litigation- Do this

Corporate Law - In India, the biggest problem with Laws is that anyone can file the case against anyone even with a small iota of evidence as procedure are not taken seriously in trial and lower courts. For ex., it is the onus on the Court to ensure all the facts of the case at the time of […]...

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Section 138 Case is delayed or Fails, Know Common Mistakes

Corporate Law - Section 138 of Negotiable Instrument Act (As amended) [Section 138] is popularly called as Cheque Bouncing case and this is one of the most trusted and success legal remedy being availed almost by all at their first instance till the new law came under Insolvency and Bankruptcy Code for its various benefits and among all […]...

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Proposed Decriminalization of Section 138 of Negotiable Instruments Act 1881 Unwarranted & against Public Interest

Corporate Law - The Modi government in a bit to improve ease of doing business and unclogging courts has decided that 39 sections  in 19 different Acts, which have been identified,  shall  be decriminalised. The  government intends to do away with minor  financial offences and has sought comments from the stakeholders against this move of  decrimin...

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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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SC explains Territorial jurisdiction in a cheque bouncing case

Himalaya Self Farming Group & ANR. Vs. Goyal Feed Suppliers (Supreme Court of India) - Supreme Court states that as per section 142(2)(a) of the Negotiable Instrument Act, the court within whose jurisdiction the branch of the bank where the payee maintains the account is situated, will have jurisdiction to try the offence, if the cheque is delivered for collection through an account....

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Director not responsible for cheque issued & Dishonoured post his retirement

Alibaba Nabibasha Vs Small farmers agri-busines Consortium & ORS (Delhi High Court) - Alibaba Nabibasha Vs Small farmers agri-busines Consortium & ORS (Delhi High Court) The Petitioner ceased to be the director of the respondent No. 2 with effect from 27th October 2010. The resignation of the petitioner was also notified to MCA. The cheques, totaling to INR 45 Lakhs, were issued ...

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HC upheld conviction in Cheque Bouncing Case

Rakesh Kumar Vs Jasbir Singh and another (Punjab and Haryana High Court) - Bouncing of Cheque Considered as Offence Under NI Act which leads to Imprisonment upto 2 Years alongwith compensation amount of cheque alongwith interest @9%...

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No Prosecution u/s 138 of NI Act for Dishonour of Cheque due to Difference in Figures & Words

Shree Tyres Vs State (Patiala House Court of Delhi) - The issue under consideration is whether prosecution u/s 138 of Negotiable Instrument Act can be levied for dishonour of a cheque on cheque having difference in the amount in figures and words?...

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Cheque not a Valid Instrument if Amount is not Specified

M/s. Shree Tyres Vs. State (Patiala House Courts : New Delhi) - Delhi High Court has 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. Thus, if the amount written on the instrument is 'absurd', the same cannot be called a 'cheque' and will not draw any legal consequences und...

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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"

SC explains Territorial jurisdiction in a cheque bouncing case

Himalaya Self Farming Group & ANR. Vs. Goyal Feed Suppliers (Supreme Court of India)

Supreme Court states that as per section 142(2)(a) of the Negotiable Instrument Act, the court within whose jurisdiction the branch of the bank where the payee maintains the account is situated, will have jurisdiction to try the offence, if the cheque is delivered for collection through an account....

Read More

Director not responsible for cheque issued & Dishonoured post his retirement

Alibaba Nabibasha Vs Small farmers agri-busines Consortium & ORS (Delhi High Court)

Alibaba Nabibasha Vs Small farmers agri-busines Consortium & ORS (Delhi High Court) The Petitioner ceased to be the director of the respondent No. 2 with effect from 27th October 2010. The resignation of the petitioner was also notified to MCA. The cheques, totaling to INR 45 Lakhs, were issued on 31st December 2018 by respondent [&he...

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HC upheld conviction in Cheque Bouncing Case

Rakesh Kumar Vs Jasbir Singh and another (Punjab and Haryana High Court)

Bouncing of Cheque Considered as Offence Under NI Act which leads to Imprisonment upto 2 Years alongwith compensation amount of cheque alongwith interest @9%...

Read More

No Prosecution u/s 138 of NI Act for Dishonour of Cheque due to Difference in Figures & Words

Shree Tyres Vs State (Patiala House Court of Delhi)

The issue under consideration is whether prosecution u/s 138 of Negotiable Instrument Act can be levied for dishonour of a cheque on cheque having difference in the amount in figures and words?...

Read More

Cheque not a Valid Instrument if Amount is not Specified

M/s. Shree Tyres Vs. State (Patiala House Courts : New Delhi)

Delhi High Court has 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. Thus, if the amount written on the instrument is 'absurd', the same cannot be called a 'cheque' and will not draw any legal consequences under the Negotiable Instruments Act....

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SC refuses to interfere with period of validity of cheque

In re Cognizance for Extension of Limitation (Supreme Court)

In re Cognizance for Extension of Limitation (Supreme Court) With reference to the prayer, that the period of validity of a cheque be extended, we find that the said  period has  not  been  prescribed by  any Statute but  it  is  a  period  prescribed by the Reserve Bank of India under Section 35A of the Banking […]...

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Decriminalisation of Cheque Bouncing

The statement released by Ministry of Finance on 8th June, 2020 has proposed to decriminalize a number of economic offences and one of such offences is the offence under Sec 138 of Negotiable Instruments Act, 1881 for dishonor of cheque. The Ministry has invited comments of stakeholders latest by June 23, 2020 on the decriminalization [&h...

Read More
Posted Under: Corporate Law |

No Prosecution of Chairman/Director without Impleading Company as Accused – Section 138 NI Act

Bhupendra Suryawanshi Vs Sai Traders (Madhya Pradesh)

Bhupendra Suryawanshi Vs Sai Traders (Madhya Pradesh) The proviso to Section 138, however, is all important and stipulates three distinct conditions precedent, which must be satisfied before the dishonour of a cheque can constitute an offence and become punishable. The first condition is that the cheque ought to have been presented to the...

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‘Decriminalization of Section 138’ is Indian Economy heading for a DOOM?

Rupali and Bhavi* A significant step has been taken by the Government of India with an objective of achieving ‘Sabka saath, Sabka Vikas and Sabka Vishwas’ and proposed decriminalization of several economic offences including the offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881. This section ensu...

Read More
Posted Under: Corporate Law |

Dishonour of cheque

In the day to day life, many of us might have acquainted with the issue of dishonor of cheque or cheque bounce, due to the insufficiency of funds or signature mismatch or overwriting or any other reasons. This article is a hand to know the provisions of the Negotiable Instrument Act 1881 dealing with the […]...

Read More
Posted Under: Corporate Law |

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