Section 148, The NI Act

Considering, Statement of Objects and Reasons of Amendment, Amended Section 148 of The N.I. Act is applicable w.r.t. Appeals against Orders of Conviction and Sentence for the Offence under Section 138, even where Criminal Complaints for the Offence are filed prior to Amendment Act No. 20/2018 [01.09.2018]. “If such a purposive interpretation is not adopted, […]

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Rebuttable Presumption

The presumption under Section 139 is a rebuttable presumption; Section 139 is an example of a reverse onus and the test of proportionality should guide the construction and interpretation of reverse onus clauses on the defendant-accused and the defendant-accused cannot be expected to discharge an unduly high standard of proof; the standard of proof for […]

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Notice to Directors II

Appellant-Director [Himanshu] cannot not be ‘prosecuted’ for a ‘Company-Issued, Director-Signed Cheque Bounce’ without Company [M/s. Lakshmi Cement and Industries Ltd.] being ‘named/arraigned’ as an Accused. Three-Judge Bench in Aneeta Hada, (2012) 5 SCC 661 governs the area of dispute. Three-Judge Bench has since been followed by a Two-Judge Bench in Charanjit Pal Jindal vs. L.N. […]

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Successive Presentations of Cheque

“The correctness of the decision in Sadanandan’s case was doubted. Three-Judge Bench of this Court in MSR Leathers v. S. Palaniappan held that there is nothing in the provisions of Section 138 of The Act that forbids the holder of the cheque to make successive presentation of the cheque and institute the criminal complaint based […]

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A Legally Enforceable Debt III

An Advocate represented its Client before a Motor Accident Claims Tribunal and charged a fee of Rs. 10,00,000 [Rupees Ten Lakhs]. The Tribunal awarded compensation. The Client was compelled to sign a further cheque, in favour of the Advocate, towards payment of a certain percentage of the decretal amount. That cheque stood dishonoured and the […]

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Video Conferencing in Matrimonial (Cheque) Disputes II (I)

Recently in M/s. Meters and Instruments Private Ltd. v. Kanchan Mehta, [Criminal Appeal No. 1731 of 2017] Goel and Lalit JJ observed: “There appears to be need to consider categories of cases which can be partly or entirely concluded ‘online’ without physical presence of the parties by simplifying procedures where seriously disputed questions are not required […]

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A Legally Enforceable Debt II

To commit an offence, within the meaning of Section 138 of The Negotiable Instruments Act, 1881 (“Act”) there must be a legally enforceable debt or other liability subsisting on the date of drawal of the cheque. This is important to point out for sometimes cheques are post-dated. Notably, in Indus Airways Pvt. Ltd. v. Magnum Aviation […]

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