SC Resolves Conflict Between NI Act & IBC

Rainbow Papers Limited sought loans from Tourism Finance Corporation of India Limited and issued post-dated cheques which stood dishonoured. Criminal Complaint was filed before Chief Metropolitan Magistrate, Saket Courts, New Delhi. Neeraj Paper Agencies Limited requested initiation of Corporate Insolvency Resolution Process against Rainbow Papers Limited. The scope of nature of proceedings are quite different. […]

A Legally Enforceable Debt IV

Though a post-dated cheque might be drawn to represent a legally enforceable debt at the time of its drawing, the cheque must represent the legally enforceable debt at the time of encashment. The sum, as represented in the cheque at the time of encashment, was not owed. Since the cheque did not represent the […]

Referred to Larger Bench XXIX: Double Jeopardy

Sangeetaben Mahendrabhai Patel v. State of Gujarat, (2012) 7 SCC 621 [B.S. Chauhan and J.S. Khehar JJ] followed in V.S. Reddy and Sons v. Muthyala Ramalinga Reddy, Criminal Appeal No. 1285 of 2015 [Dipak Misra and Prafulla C. Pant JJ] has taken a different view from G. Sagar Suri v. State of U.P., (2000) 2 […]

Burden of Proof

It is trite to refer to tenets laid down in Palermo and Vienna Conventions. There has been a consensus, acquisition-possession-use-concealing or disguising illicit origin of illegitimately obtained money to evade legal consequences would be money-laundering. However, growth of jurisprudence in this law did not stop or end… _____ We hold, Section 24 of The […]

Unchartered Ocean of Policy Decision IV

A mere differential treatment on its own cannot be termed as an anathema to Article 14. When there is a reasonable basis for a classification adopted by taking note of exigencies and diverse situations, Court is not expected to insist on absolute equality by taking a rigid and pedantic view as against a pragmatic one. […]

Banker’s Protection, The NI Act

Elucidation on aspect of ‘care’ required to seek statutory protection under Section 131 is to be found in Indian Overseas Bank v. Industrial Chain Concern, (1990) 1 SCC 484. We must be realistic and pragmatic not to narrow down Banker’s protection under Section 131 to make Banker’s position vulnerable. Officers of Banks are not required […]

The Nature of Judicial Power: Article No. 1101

The question had been floating for a while. It was January 1, 2019 when I wondered who amongst then Chief Justices of HCs, if elevated, could be our 51st CJI. January 18, 2019 – we finally received an answer. CJI No. 51 would be Hon’ble Justice Sanjiv Khanna who wasn’t ever a Chief Justice of […]

Vicarious Liability

Girdhari Lal Gupta v. D.H. Mehta, (1971) 3 SCC 189; State of Karnataka v. Pratap Chand, (1981) 2 SCC 335; Municipal Corporation of Delhi v. Ram Kishan Rohtagi, (1983) 1 SCC 1; Municipal Corporation of Delhi v. Purshotam Dass Jhunjunwala, (1983) 1 SCC 9; National Small Industries Corporation Limited v. Harmeet Singh Paintal, (2010) 3 […]

Settlement Deed Cheque

This is a case of cheques, issued pursuant to a deed of compromise, being dishonoured. The dishonour of cheques, issued subsequent to a settlement agreement, would give rise to a fresh cause of action attracting liability under Section 138 and other remedies under civil law and criminal law. A contrary interpretation would lead to contradictory […]

Section 141, The NI Act II

In light of S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla, (2005) 8 SCC 89 in addition to asserting Directors are in-charge and responsible for conduct of business, if statutory compliance of Section 141 has been made – it is not open for High Courts to interfere under Section 482, CrPC unless it comes across some unimpeachable, incontrovertible […]

Same Transaction

Offences that are committed as part of the ‘same transaction’ can be tried jointly as per Section 220 of The Code of Criminal Procedure, 1973. What is meant by ‘same transaction’ is not defined and it seems to us to be a difficult task to undertake a definition. We have not come across a single […]

The Plea of Limitation XVI: Section 18 of The Limitation Act, 1963

As has been held in Ambika Prasad Mishra v. State of U.P., (1980) 3 SCC 719 every argumentative novelty does not undo a settled position of law. Section 19 of The Limitation Act, 1908 corresponds to Section 18 of The Limitation Act, 1963. Khan Bahadur Shapoor Freedom Mazda v. Durga Prasad, (1962) 1 SCR 140 […]

Civil Sheep & Criminal Wolf

A reading [State of Assam v. Ranga Mahammad, (1967) 1 SCR 454; Jagdish Chander Gupta v. Kajaria Traders (India) Ltd., (1964) 8 SCR 50; Rajasthan State Electricity Board v. Mohan Lal, (1967) 3 SCR 377; CBI v. Braj Bhushan Prasad, (2001) 9 SCC 432; Godfrey Phillips India Ltd. v. State of U.P., (2005) 2 SCC […]

Rebuttable Presumption III

Trial Court completely overlooked and failed to appreciate statutory presumption drawn under Section 118 and Section 139, a point of law notably crystalized in Rohitbhai Jivanlal Patel v. State of Gujarat, (2019) 18 SCC 106. Trial Court ought to have presumed, cheque was issued as consideration for a legally enforceable debt, once signatures were admitted. […]

Section 141, The NI Act I

“S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla, (2005) 8 SCC 89 had occasion to consider the requirements of Section 141. “What is required is that the persons who are sought to be made criminally liable under Section 141 should be at the time the offence was committed, in charge of and responsible to the company for […]

Rebuttable Presumption II

“We are of view, whenever accused has questioned financial capacity of complainant in support of his probable defence, despite presumption under Section 139 about presumption of a legally enforceable debt and such presumption is rebuttable, thereafter onus shifts again on complainant to prove his financial capacity and complainant is required to lead evidence to prove […]

Cheque Bounce Acquittal

The legal heirs of someone deceased, convicted under Section 138, are neither liable to pay the fine or undergo imprisonment. However, they have a right to challenge the conviction of their predecessor. Trial Court had acquitted the (now) deceased on basis of an opinion of a handwriting expert. High Court considered, the opinion was inconclusive. […]

Section 143A, The NI Act

“With effect from 01.09.2018, Section 143A was inserted in The Negotiable Instruments Act, 1881 by Amendment Act No. 20/2018. We are concerned only with applicability of said Section 143A to offences under Section 138, committed before insertion of said Section 143A. Section 143A not only creates a new disability or an obligation but also exposes […]

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, […]

Rebuttable Presumption I

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

The Last Word

A Diversion for Lawyers and Others

Negotiable Instruments