Negotiable Instruments Act 1881

8th Sep, 2018

If the Complainant fails to prove that cheque has been dishonored as provided under Section 146 of the Negotiable Instruments Act or by any other mode, presumption in favor of the said Complainant will not arise

In a recent judgment, the Bombay High Court, held that the Complainant has to prove the basic fact of dishonor of cheque before the burden of proof is discharged by her to establish that an […]
13th Feb, 2017

Rebutting the presumption against accused in Section 138, N I Act #indianlaws

Delhi High Court in the matter of Mukesh Kumar Vs. State Crl. L P 555/2017 decided on 2nd Feburary, 2017 held the fact that the cheque has been signed by the accused is not denied […]
14th Dec, 2016

Cheque given as ‘Security’ is covered within the ambit of Section 138 of N.I Act #indianlaws

The Supreme Court in a judgment delivered in September has held that the dishonour of a post-dated cheque given for repayment of loan installment which is also described as “security” in the loan agreement is […]
9th May, 2016

For quashing of proceedings against a Director u/s 138/141 of the Act it must be shown that no offence is made out against him and quashing is not to be granted merely on asking #indianlaws

When in view of the basic averment process is issued, the complaint must proceed against the Directors. But, if any Director of a company wants the process to be quashed by filing a petition under […]
25th Feb, 2016

Arraigning of Partnership firm imperative to prosecute partner U/s.141 of the NI Act #indianlaws

There can be no dispute that as the liability is penal in nature, a strict construction of the provision would be necessitous. Therefore for maintaining the prosecution under Section 141 of the Act, arraigning of […]
10th Feb, 2016

There is a presumption that a negotiable instrument is supported by consideration #indianlaws

The Hon’ble Court held that there is a presumption that a negotiable instrument is supported by consideration. There was no dispute that such a consideration existed in as much as the cheques were issued in […]
24th Sep, 2015

Notice under Section 138 is required to be given to the ‘drawer’ of the cheque and not to any other person#indianlaws

Notice under Section 138 N I Act is required to be given to the ‘drawer’ of the cheque so as to give the drawer an opportunity to make the payment and escape the penal consequences. […]
23rd Jul, 2015

Director signing cheque in personal capacity is liable in a cheque dishonor case#indianlaws

Where the cheque is drawn by the employee of the appellant company on his personal account, even if it be for discharging dues of the appellant-company and its Directors, the appellant-company and its Directors cannot […]
21st May, 2015

Proposed amendment in Negotiable Instruments Act 1881 in some way would create further chaos

Amendment in Negotiable Instrument Act 1881 may bring some positive changes, while it will create chaos for the existing cases.
11th May, 2015

No need to issue notice to Directors of the accused company in proceedings under Section 138 N I Act #indianlaws

Section 138 of the N I Act does not admit of any necessity or scope for reading into it the requirement that the directors of the Company in question must also be issued individual notices […]
19th Jan, 2015

Cheque dishonour proceedings upon reaching the stage of Section 145(2) of NI Act or beyond to continue in Court conducting trial

It is only when the stage of proceedings in cases filed under Section 138 of the Act has reached the stage of Section 145(2) of the Act or beyond thereof, such case shall continue to […]
11th Dec, 2014

Inchoate instruments are also valid and legally enforceable

Once the execution of Cheque is admitted, it shall be taken that the cheque was issued by the accused in favour of the complainant towards the discharge of the liability.