Negotiable Instruments Act

Liability of Director Under Negotiable Instruments Act, 1881

Corporate Law - The Negotiable Instruments Act, 1881 (hereinafter referred as NI Act) is the safety net for those creditors (deemed or actual) who face difficulties in recovering defaulted amount, on account of debt or any other liability. Section 138 of the NI Act prescribes criminal liability onto such defaulter on account of dishonorment of cheque(s) ...

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Labeling A Cheque as a Security does not Obviate its Character: SC

Corporate Law - APEX COURT in its recent decision in held that merely labelling a cheque as a security would not obviate its character as an instrument designed to meet a legally enforceable debt or liability....

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Section 138 NI Act Versus Moratorium In IBC

Corporate Law - In recent times of increasing economic fraud and cheating, Section 138 of Negotiable Instruments Act, 1881 which prescribe liability of the drawer of cheque in the event the cheque is dishonoured, provides safeguard to holder of cheque. However, due to multiplicity of litigation in various legislations cause delay in disposal of complaint...

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NI ACT – Section 143A Applicable from Perspective Effect or Retrospective?

Corporate Law - A negotiable instrument is a piece of paper that entitles a person to pay a sum of money that is transferable from one person to another by endorsement and delivery. The main objective before introducing the Negotiable Instrument Act, 1881 is to legalize the system under which these instruments can deliver from one person to another the s...

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Whether mere endorsement of Bank “payment stopped” sufficient to entertain complaint u/s 138 of NI Act?

Corporate Law - The offence is said to be committed under Section 138 of the NI Act, only when he fails to pay the debt within 15 days and such person shall be punishable with imprisonment for a term which may be extended to two years, or with a fine which may extend to twice the amount of the cheque, or with both....

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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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Despite invocation of Section 138 of NI Act Crime can be registered under Sections 406, 420 of IPC

Rashmi Tandon Vs State of Karnataka (Karnataka High Court) - Submission of petitioners that proceeding for offence punishable under Section 420 of IPC is not maintainable once the complainant invokes Section 138 of NI Act is unacceptable....

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NI Act Section 138: Director not liable if Company is not been made accused

Geeta Singh Vs Pradeep Singh (Delhi High Court) - Geeta Singh Vs Pradeep Singh (Delhi High Court) If a company is a drawer of the cheque, it is a necessary party to proceedings initiated under Section 138 of the NI Act. The liability of a private person, in his capacity of a Director or any other authority to act on behalf of the Company, […...

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NI Act: No liability of Directors if No Offence is Attributed to Company

Hari Shamsher Kaushik Vs Jasbir Singh, Managing Director, M/S Accura Care Pharmaceuticals Pvt. Ltd. (Delhi High Court) - Hari Shamsher Kaushik Vs Jasbir Singh, Managing Director, M/S Accura Care Pharmaceuticals Pvt. Ltd. (Delhi High Court) Petitioner submitted that the learned Trial Court dismissed the complaint observing that since the company had not been impleaded as an accused, the liability of the respondent as i...

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Scuttling of criminal process at pre-trial stag not merited: SC

Rathish Babu Unnikrishnan Vs State (Govt. of NCT of Delhi) (Supreme Court of India) - Rathish Babu Unnikrishnan Vs State (Govt. of NCT of Delhi) (Supreme Court) The issue to be answered here is whether summons and trial notice should have been quashed on the basis of factual defences. The corollary therefrom is what should be the responsibility of the quashing Court and whether it mu...

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Prosecution of Partners/Directors without arraigning firm/company as accused for dishonour of cheque not maintainable u/s 138 of NI Act: SC

Dilip Hariramani Vs Bank of Baroda (Supreme Court of India) - Dilip Hariramani Vs Bank of Baroda (Supreme Court of India) It is common knowledge that complaint under section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheques are usually made against the directors of the company or the partners of the partnership firm and the company or the pa...

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Telangana HC Issues Practice Directions on Cheque Bouncing Cases

Circular No. 11/2021 - (21/06/2021) - Pursuant to directions of Hon'ble Supreme Court of India, following Practice Directions are issued to all Courts dealing with cases under Section 138 of Negotiable Instruments Act, in Telangana State....

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Every Saturday declared as a public holiday for LIC of India

S.O.1630(E) - (15/04/2021) - Central Government hereby declares every Saturday as a public holiday for Life Insurance Corporation of India, with immediate effect....

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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 Act’s Popular Posts

Recent Posts in "Negotiable Instruments Act"

Despite invocation of Section 138 of NI Act Crime can be registered under Sections 406, 420 of IPC

Rashmi Tandon Vs State of Karnataka (Karnataka High Court)

Submission of petitioners that proceeding for offence punishable under Section 420 of IPC is not maintainable once the complainant invokes Section 138 of NI Act is unacceptable....

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NI Act Section 138: Director not liable if Company is not been made accused

Geeta Singh Vs Pradeep Singh (Delhi High Court)

Geeta Singh Vs Pradeep Singh (Delhi High Court) If a company is a drawer of the cheque, it is a necessary party to proceedings initiated under Section 138 of the NI Act. The liability of a private person, in his capacity of a Director or any other authority to act on behalf of the Company, […]...

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NI Act: No liability of Directors if No Offence is Attributed to Company

Hari Shamsher Kaushik Vs Jasbir Singh, Managing Director, M/S Accura Care Pharmaceuticals Pvt. Ltd. (Delhi High Court)

Hari Shamsher Kaushik Vs Jasbir Singh, Managing Director, M/S Accura Care Pharmaceuticals Pvt. Ltd. (Delhi High Court) Petitioner submitted that the learned Trial Court dismissed the complaint observing that since the company had not been impleaded as an accused, the liability of the respondent as its Managing Director could not be attach...

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Scuttling of criminal process at pre-trial stag not merited: SC

Rathish Babu Unnikrishnan Vs State (Govt. of NCT of Delhi) (Supreme Court of India)

Rathish Babu Unnikrishnan Vs State (Govt. of NCT of Delhi) (Supreme Court) The issue to be answered here is whether summons and trial notice should have been quashed on the basis of factual defences. The corollary therefrom is what should be the responsibility of the quashing Court and whether it must weigh the evidence presented [&hellip...

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Liability of Director Under Negotiable Instruments Act, 1881

The Negotiable Instruments Act, 1881 (hereinafter referred as NI Act) is the safety net for those creditors (deemed or actual) who face difficulties in recovering defaulted amount, on account of debt or any other liability. Section 138 of the NI Act prescribes criminal liability onto such defaulter on account of dishonorment of cheque(s) ...

Read More
Posted Under: Corporate Law |

Prosecution of Partners/Directors without arraigning firm/company as accused for dishonour of cheque not maintainable u/s 138 of NI Act: SC

Dilip Hariramani Vs Bank of Baroda (Supreme Court of India)

Dilip Hariramani Vs Bank of Baroda (Supreme Court of India) It is common knowledge that complaint under section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheques are usually made against the directors of the company or the partners of the partnership firm and the company or the partnership firm are not arraigned [&helli...

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Interim Compensation Awarded U/S 143A of NI Act Cannot Be Recovered From Estate of Deceased Accused

Indranil Mukherjee Vs State of West Bengal And Others (Calcutta High Court)

Indranil Mukherjee Vs State of West Bengal And Others (Calcutta High Court) The Calcutta High Court held that in case of death of an accused the compensation awarded under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused, but an interim compensation awarded under Section 143A of [...

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IBC – Moratorium Applies Only to Corporate Debtor & not to Director: SC

Narinder Garg Vs Kotak Mahindra Bank Ltd. (Supreme Court of India)

Narinder Garg Vs Kotak Mahindra Bank Ltd. (Supreme Court) In P. Mohanraj & Others v. Shah Brothers Ispat Private Limited, (2021) 6 SCC 258, a Bench of three-Judges of this Court considered the matter whether a corporate entity in respect of which moratorium had become effective could be proceeded against in terms of Sections 138 [&hel...

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Section 138 of NI Act- Accused May Examine Complainant as A Witness to Disprove His Case

S.M.D.Mohamed Abdul Khader Vs Muniswari (Madras High Court)

S.M.D.Mohamed Abdul Khader Vs Muniswari (Madras High Court) The Honourable Supreme Court of India held that when the accused had taken specific stand that the complainant had no source of income to lend such a huge sum, the accused can very well prove the same by cross-examination, witnesses and materials. In this regard, the Honourable [...

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Sec 138 NI Act – blanket exemption from personal appearance cannot be granted

Mahesh Kumar Kejriwal Vs Bhanuj Jindal (Supreme Court of India)

Mahesh Kumar Kejriwal Vs Bhanuj Jindal (Supreme Court of India) Learned counsel for the petitioner has attempted his best to persuade us to interfere with the orders impugned, whereby the petitioners’ prayer for exemption altogether from appearance in the case pertaining to the offence under Section 138 of the Negotiable Instruments Act...

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