Negotiable Instruments Act articles

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...

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Posted Under: Corporate Law |

‘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...

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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 […]...

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Posted Under: Corporate Law |

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

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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Posted Under: Corporate Law |

Section 138 Case is delayed or Fails, Know Common Mistakes

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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Posted Under: Corporate Law |

SC: No exclusion of Lockdown Period for Limitation Purposes of Bank Instruments

SC: No exclusion of Lockdown Period for Limitation Purposes of Bank Instruments- RBI should issue directions The Supreme Court on June 3, 2020 dismissed a PIL of Advocate Harsh Nitin Gokhle  to exclude the time period of lockdown for calculation of  limitation for presentation of cheques. It was petitioned  that during the nationwide l...

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Analysing Section 6 of Negotiable Instrument Act, 1881

In simple terms, a cheque is defined as a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued. There are other legal definitions as well which are referred frequently to understand the meaning of the term ‘cheque’. […]...

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Complaints Under Section 138, N.I. Act : Practice and Procedure

Through this write up, a statutory and judicial light is focused on the different aspects of procedure and provisions set up in cases related to Dishonour of Cheques as enshrined in Chapter XVII decoding form Section 138 to Section 148 of The Negotiable Instruments Act, 1881. Introduction and objective :- Negotiable Instrument act was ena...

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Electoral Bonds: it a legal weapon to curb and mitigate illegitimate funding for political parties?

Article discusses Union Budget 2017 provisions related to ELECTORAL BOND. It discusses if the same is a legal weapon to curb and mitigate illegitimate funding for political parties....

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New Cheque Bounce Provisions give MSME’s more power in Cheque Bounce Cases

An Amendment Act was brought by the Government to meet reducing the undue delay in the cases of dishonor of cheques and to provide payment of interim compensation to the complainants. The MSME’s in particular have been representing that due to delay tactics, easy filing of appeals and obtaining stay on proceedings, the very purpose of s...

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Posted Under: Corporate Law |

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 |

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....

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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...

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Compounding of offence under Negotiable Instruments Act, 1881

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

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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Posted Under: Corporate Law |

All about Dishonor of Cheque Under Negotiable Instrument Act, 1881

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....

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Remedies for Cheque Bounce

 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:...

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Trend of judgments of Supreme court in cheque dishonour cases

Recently the Supreme Court in M/s Laxmi Dye Chem Vs State of Gujarat & Ors set aside the order of high court of which quashed the Complaints filed before the trial court u/s 138 of the Negotiable Instruments Act,1881(NI Act) for dishnour of cheques. ...

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Director’s Responsibility for Dishonour of Cheques?

We need not go into the background concerning the usage of cheque and it is a reality now that the payments through cheque have become an indispensable part of the mercantile community and even the public in general. In fact, payments through cheque is encouraged and made mandatory in view of certain regulations and as a best accounting p...

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Posted Under: Corporate Law |

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