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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Company includes partnership firm | Section 141 | Negotiable Instruments Act

G Ramesh Vs Kanike Harish Kumar Ujwal & Anr. (Supreme Court of India) - G Ramesh Vs Kanike Harish Kumar Ujwal & Anr. (Supreme Court of India) In terms of the explanation to Section 141, the expression ‘company’ has been defined to mean any body corporate and to include a firm or other association of Sub-section (1) of Section 141 postulates that where an...

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Negotiable Instrument Act covers not only debt but also covers Later Liability

Madan Tiwari Vs Yashwant Kumar Sahu (Chhattisgarh High Court) - Madan Tiwari Vs State of Chhattisgarh (Chhattisgarh High Court) Purport of the special law under the Negotiable Instruments Act is to ensure that the promise to pay is abided by the person so promising. The provision under Section 139 of the NI Act is that it shall be presumed that the holder of a c...

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Section 143A is effective prospectively & s. 148 is effective retrospectively to pending cases

M/s. Ginni Garments and anr. Vs M/s Sethi Garments (Punjab & Haryana High Court) - If the provisions are substantive in nature then the same cannot be applied Retrospectively to the pending cases. However, if the provisions are procedural in nature then the same has to be applied to all the cases, including the one pending before the Court....

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Non-Filing of I-T Returns not necessarily mean no source of Income

Shrimati Ragini Gupta Vs. Piyush Dutt Sharma (Madhya Pradesh High Court) - Non-filing of Income Tax Return by itself would not mean that the complainant had no source of income and thus, no adverse inference can be drawn in this regard only because of absence of Income Tax Return....

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Test of Proportionality must guide in determining if presumption under Sec.139 was rebutted

Anss Rajashekar Vs Augustus Jeba Ananth (Supreme Court) - It was held that in determining whether the presumption has been rebutted, the test of proportionality must guide the determination. The standard of proof for rebuttal of the presumption u/s 139 is guided by a preponderance of probabilities. ...

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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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Negotiable Instruments Act’s Popular Posts

Recent Posts in "Negotiable Instruments Act"

Company includes partnership firm | Section 141 | Negotiable Instruments Act

G Ramesh Vs Kanike Harish Kumar Ujwal & Anr. (Supreme Court of India)

G Ramesh Vs Kanike Harish Kumar Ujwal & Anr. (Supreme Court of India) In terms of the explanation to Section 141, the expression ‘company’ has been defined to mean any body corporate and to include a firm or other association of Sub-section (1) of Section 141 postulates that where an offence is committed under Section [&he...

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Negotiable Instrument Act covers not only debt but also covers Later Liability

Madan Tiwari Vs Yashwant Kumar Sahu (Chhattisgarh High Court)

Madan Tiwari Vs State of Chhattisgarh (Chhattisgarh High Court) Purport of the special law under the Negotiable Instruments Act is to ensure that the promise to pay is abided by the person so promising. The provision under Section 139 of the NI Act is that it shall be presumed that the holder of a cheque […]...

Read More

Section 143A is effective prospectively & s. 148 is effective retrospectively to pending cases

M/s. Ginni Garments and anr. Vs M/s Sethi Garments (Punjab & Haryana High Court)

If the provisions are substantive in nature then the same cannot be applied Retrospectively to the pending cases. However, if the provisions are procedural in nature then the same has to be applied to all the cases, including the one pending before the Court....

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Non-Filing of I-T Returns not necessarily mean no source of Income

Shrimati Ragini Gupta Vs. Piyush Dutt Sharma (Madhya Pradesh High Court)

Non-filing of Income Tax Return by itself would not mean that the complainant had no source of income and thus, no adverse inference can be drawn in this regard only because of absence of Income Tax Return....

Read More

Test of Proportionality must guide in determining if presumption under Sec.139 was rebutted

Anss Rajashekar Vs Augustus Jeba Ananth (Supreme Court)

It was held that in determining whether the presumption has been rebutted, the test of proportionality must guide the determination. The standard of proof for rebuttal of the presumption u/s 139 is guided by a preponderance of probabilities. ...

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Once Presumption U/s 139 is drawn, Complainant need not prove source of fund till accused discharges his burden

Rohitbhai Jivanlal Patel Vs State of Gujarat & Anr. (Supreme Court)

SC held that once the court has drawn presumption of existence of legally enforceable debt as per Section 139 of the NI Act, factors like source of funds are not relevant if the accused has not been able to rebut the presumption....

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Unregistered Partnership Firm can file Suit against Dishonour of Cheque: Delhi HC

M/S. Hindustan Infrastructure Construction Corporation Limited & Anr. Vs M/S. R.S. Woods International & Ors. (Delhi High Court)

In the instant case, the respondent is seeking enforcement of the liability of the petitioners created under Section 30 and 37 of the Negotiable Instruments Act, 1881 as the cause of action for the plaint is based on the dishonour of the said cheques. Since, the suit is not based on any contract between the parties, the bar under Section ...

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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....

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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...

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Posted Under: Corporate Law |

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